Shipping firms' net profits decrease despite increasing sales

Though marking highly increased sales profits, Dongbang Transport Logistics Corp., a stevedoring company, presented a decreasing net income due to exchange losses.

Whole revenues in the first six months amounted to 104.2 billion won, up from 104.1 billion won in the same period of last year, showing a little increase. The outcomes by item were as follows: stevedoring in port (loading and unloading, storage, warehouse) ~ 45.9 billion won, trucking ~ 38.4 billion won, sea transportation ~ 15 billion won, others (leasing, repairs) ~ 4.9 billion won.

In addition to revenue increases, the company's sales profits grew by 56.7% to 7.49 billion won compared to 4.78 billion won a year ago.

However, ordinary profits stagnated at 1.81 billion won in the wake of non-operating income decreases as well as non-operating expenses, a far fall from 4.55 billion won a year ago. Their net income was considerably weak at a mere 128 million won.

During this period, Dongbang incurred currency losses of 1.55 billion won and non-operating expenses of 10.37 billion won, up from 7 billion won a year earlier.

Although it pulled in some hefty revenues, HMM, a leading South Korean shipping company, also showed 105.8 billion won in ordinary losses and 75.43 billion won in net losses due to currency exchange losses and asset sales losses.

Revenues in the first six months of this year for HMM increased by 16.2% to 2.89 trillion won, well over its 2.49 trillion won in the same period last year. Sales profits also grew by 16.5% to 271.6 billion won from 233.1 billion won a year ago.

However, it incurred 603.8 billion won in non-operating expenses, including currency exchange losses of 138.9 billion won. During the same period last year, it spent only 358.5 billion won, almost half of the 603.8 it spent this year.