Hanjin quarterly profit up 2.6pc on rising Asia-Europe trade

SOUTH KOREA's Hanjin Shipping has posted 2.6 per cent profit increase to KRW112.3 billion (US$123.71 million) for the third quarter of 2007.

Third quarter earnings come on the back of a 14.9 per cent increase in sales compared to the same quarter last year, amounting to KRW1.83 trillion while operating profit came to KRW122.7 billion.

Hanjin Shipping said in a statement its container and bulk businesses both recorded increases in sales from January to September. The company's container division contributed KRW4.18 trillion in sales and bulk accounted for the remaining KRW847.6 billion, with sales for the first three quarters of the year adding up to KRW5.03 trillion, showing a 11.4 per cent increase over the same period last year.

The company attributed the sales growth to the stable increase in cargo volumes for its container business and the rise in freight rates for bulk caused by growing demand for the transport of raw material.

Hanjin's operating profit for the first three quarters of the year was KRW153.8 billion, representing an increase of 59.9 per cent compared to the corresponding period last year. The growth came despite an increase in bunker fuel charges.

The company said the factor behind the improvement in operating profit was an increase in third quarter cargo volumes for its container business, which is traditionally a peak season.

"Although Asia to US trade has remained slow throughout the year, Asia to Europe trade, having been weak the previous year, has shown a turn-around due to the rising demand in European regions," said the company statement.