Astounding
Performance Record
Hyundai Merchant Marine registers 233 billion won first-half net profit

Hyundai Merchant Marine recorded its net profit rising 35.9 percent in the first-half, compared to the same period a year earlier totaling 233 billion won, company officials said.
The shipping company's performance has been drawing large attention in the maritime shipping community because it came while the community is being faced with a lot of hardship.
HMM said its first-half turnover amounted to 2.385,8 trillion won, down 2.5 percent compared to the same period last year, while operation profit contracted 6.6 percent year-on-year at 243.4 billion won, although its ordinary profit shot up by 8.6 percent from the same period last year at 268 billion won.
The shipping firm said reductions in revenue and operating profit have been caused by the changes in the foreign exchange rates and based on the U.S. dollar, its first-half revenue amounted to $2.35 billion, up 13 percent from the same period last year and increases in net profit have been due to cuts in non-business expenses including reductions in interest and corporate taxes, in addition to decreases in the foreign exchange loss, which altogether were down 48 percent from the same period last year. The situation strengthened the financial structure of the company. The interest expenses were cut to 49.2 billion won this year from 85.5 billion won in the first half of last year, down 42 percent.
The company said the performance has exceeded expectations because it came amid various adversities including high fuel prices and the steep fluctuations in the won-dollar exchange rate.
Furthermore, the achievement came while bulk carrier cargo charges and oil tank transport charges were low although the world shipping industry was going through slump.
The shipping firm said it was able to record high profit increases due to cuts in non-business expenses including interest expenses, and corporate taxes thanks to its healthy financial structure as a result of the turnaround in operations and boosts in its credit ratings.
The company also attributed its improved record to its ever-ready risk management system, which made it overcome all kinds of adversities in down time. In the first-half of the year, the company opened its routes to India and Vietnam, along with the expansion in other shipping routes, to strengthen its competitive strength. The company said it also maintained an idealistic balance between container and non-container ships in operation to generate higher profits.
Roh Ik-jong, president and CEO of the shipping firm, distributed the letters to shareholders explaining the company's management policies to face problems, saying that any companies in any kinds of business categories cannot expect to have a good business environment all the time. The maritime industry has had two good years and it appears that the situation is about to change now it seems, according to the current business cycle, which comes in two years. We expect to make a soft landing. HMM has been preparing for the sluggish trends that will follow good times by cutting expenses and maximizing profit. The company operated its risk management system at all times to strengthen its structure so that it might be able to record good performances regardless of business conditions with officers and staff doing their best ever, the CEO pledged in his letters to shareholders.
HMM, founded in 1976, has grown to become one of the world's multi-modal marine transportation companies, commanding over 119 ships as of January, 2002. The fleet includes full container carriers, LNG carriers, oil tankers, bulk carriers, and others.
The element that makes HMM stand out is their diverse array of services and their varied array of vessels. Sales in the container and bulk divisions are every balanced which makes the operation more stable and flexible. To preserve the ocean environment and ensure the safe navigation and operation of vessels, HMM launched "Environment-friendly Management" that led to its obtaining the ISO 14001 certification, the international standard for protecting the environment. nw

President Roh Ik-jong of Hyundai Merchant Marine Co.

HMM container ship sailing toward
her destination fully loaded with containers.