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The fourth largest South Korean automaker, Ssangyong Motors Co., posted losses for the second consecutive quarter due to increased spending for the release of new models.
Ssangyong Motors said Monday in a regulatory filing that its operating loss on a consolidated basis during the period from April to June has widened by 12.9% year on year at 7.5 billion won ($ 6.6 million). Net loss also increased 35.9% to 5.4 billion won over the same period, while sales rose 4.3% to 941.9 billion won.
For the first six months of this year, the company's operating loss jumped 75.2% year-over-year to 38.7 billion won, while sales rose by 3.5% to 1.75 trillion won. The net loss totaled 39.6 billion won.
From 2.28 pm. On Tuesday, Ssangyong Motors shares rose 1.24% to 4,475 won.
Rexton Sports
The Korean car brand owned by Indian Mahindra & Mahindra attributes its losses to a decline in profitability due to sluggish sales and lean-to-pay charges . The company sold 67,110 cars in the first half of this year, down 4.6% over last year, while depreciation costs have soared since the launch of the new model Rexton Sports earlier this year.
Rexton Sports domestic sales have however begun to increase since May and exports have rebounded since the second quarter, raising hopes of a recovery in overall sales, said a Ssangyong Motors official.
HI Investment & Securities revised Tuesday its target price to 5,500 won against 6,000 won while retaining its investment opinion "Buy", citing the risk of increasing losses despite the positive signs of a possible increased exports and lower fixed costs.
By Kim Jung-hwan and Lee Ha-yeon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]
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