Hanjin Shipping expects to post a profit this year and boost revenue 27 percent as world trade picks up and shipping lines cut fleet expansion plans, according to Bloomberg News.
“The gap between demand and capacity is expected to narrow this year as demand recovers and ship deliveries are delayed,” Chief Executive Officer Kim Young Min told reporters in Seoul. “Our aim is to post a net income for the year.”
Revenue may reach $7.1 billion from $5.6 billion in 2009, Kim said. The company also aims to make an operating profit, or sales minus the cost of goods sold and administrative expenses, compared with a loss of $26 million last year, he said without giving a precise profit forecast.
Hanjin Shipping, South Korea's largest container line, and many other major carriers began raising freight rates late last fall after they had cut capacity enough to support the rate increases as trade volumes began to recover from the global recession.
Hanjin Shipping had a net loss of $243 million in the fourth quarter of last year, it said on Feb. 4. That was the first time it had reported results since being divided into two separate listed companies in December, one an operating company and the other a holding company.