Hanjin’s operating profit soars to $370 million
Hanjin Shipping reported spectacular increases in its operating and net profits for 2003, with operating profit rising 36-fold to 432 billion Korean Won ($370 million) from Won12 billion in 2002. Net profit climbed 17-fold last year to Won331 billion ($284 million) from Won18.5 billion in 2002.
The high percentage increases in profit results, although calculated from the low base of 2002, reflect the dramatically improved market conditions of the container and bulk shipping sectors. The operating income for 2003 was the best for at least five years.
Hanjin cited the increase in transport volume and the freight recovery in container shipping last year, together with the strong bulk market, as reasons for its improved results.
“Also, constant efforts to cut down costs by closely collaborating with other members of the CKY-HS (alliance) contributed to the increase in figures,” the Korean shipping company said.
Hanjin’s revenue increased 23 percent in 2003 to Won5.6 trillion ($4.8 billion), as container carrying rose 12.5 percent to 2.59 million TEUs.
Hanjin’s Won432 billion ($370 million) operating profit for 2003 exceeded its high Won401 billion ($314 million) operating income for 2000, the year that marked the peak of the previous business cycle in the container shipping industry.
Hanjin reported its debt-to-equity ratio improved from 594 percent in 2002 to 450 percent last year.