HMM faces great losses

According to the consolidated and separate basic financial statements, standardized under the Korean International Financial Reporting Standard (“K-IFRS”), which were released by Hyundai Merchant Marine(“HMM”), HMM saw its operating loss collapse by 184% to USD 74 million, compared to USD 27 million in the first quarter of 2011.

Fortunately, the Korean liner saw revenue increase by 9.3% to 1,765 million compared to the previous three months, which counted in the K-IFRS ways since 2011 Q1.

After the liner adopted K-IFRS, about USD 38 million for some other charges - loss of vessels sale, cost of container equipments, depreciation cost, etc. - included in the operating expenses. HHM said, “It has widened a heavy deficit”, and, “deteriorating rates and gross tonnage, plus a rise in fuel prices and a drop in exchange rates has made operations more difficult so profitability is worsening.” <김보람 기자 brkim@ksg.co.kr>