Hanjin sees $1 billion reversal

Hanjin sees $1 billion reversal    Hanjin Shipping said Thursday its container shipping division sunk to a $652 million net loss for 2009, compared to a profit of $100 million in 2008.
   The year-end results reflect Hanjin’s business restructuring in November, when it decoupled its business into an operating company that controls the shipping line, and a holding company that controls its terminals, logistics and investments, as well governance of the group.
   Hanjin said its container volume for 2009 fell 6 percent to 3.2 million TEUs from 3.4 million TEUs. Though volume fell only 1 percent in the fourth quarter, to 905,000 TEUs, Hanjin continued to sustain losses, its container line losing $134 million in the last three months of 2009.
   Overall the company, including its bulk division, suffered operating loss of $738 million in 2009, a more than $1 billion reverse on the $329 million it made in 2008.
   Container revenue slid 32.4 percent in 2009 to $4.4 billion, while company revenue as a whole fell 34.5 percent to $5.6 billion. The bulk division, which performed poorly through the first three quarters, showed signs of recovery in the fourth quarter, as revenue increased 8.4 percent and a loss of $5 million, compared to a $23 million loss in the third quarter.
   'While in 2010 the shipping industry is expected (to see an) excess supply situation derived from new ship deliveries previously ordered, the supply side will decrease due to scrapping of older tonnage and slow steaming for reducing emissions and saving oil (costs),' Hanjin said in a statement. 'In addition to this, the sales environment will be improved by the increase in container traffic due to the gradual economic recovery from U.S. and Europe.'
   Hanjin said it expects to make a profit in 2010.