President and CEO Lee Yoo-il of Ssangyong Motor, which is a partner of the US$14.4 billion Mahindra Group, disclosed sales volumes of 26,441 vehicles, which include CKD, KRW 32.6 billion in operating loss and KRW 644 billion in revenues. Although, there was economic slowdown, in the domestic as well as international market, in the first quarter of 2012, the company registered 3.8 percent rise in revenues, a 6.9 percent growth in sales volume and a 22.0 percent decrease in operating loss against same period last year.
Due to less demand in the national auto market, the domestic sales in the first quarter recorded 3 percent downfall whereas a 13 percent rise has been recorded in export compared to similar period of the previous year. This resulted due to the higher sales in the Middle East, Russia, Africa, and Asia-Pacific markets.
The sales momentum of the company was led by Korando Sports and the Korando C. In January 2012, Korando Sports was launched, and since then it sales stood at 9,168 vehicles against 6,085 vehicles of last year. A 50.7 percent growth has been clearly attained. The profit and loss statement of Ssangyong also improved to a great extent as the operating loss declined to KRW 32.6 billion. Last year, the figure was KRW 41.9 billion whereas for the previous quarter it was KRW 47.4 billion.
A main operating performance indicator for the operating cash flow, the company’s EBITDA showed little profit, which is a good indication for Ssangyong. As KRW 46 billion debt forgiveness income was registered for the first quarter of 2011, the company mentioned that this quarter results cannot be compared to the same period of last year.
Lee Yoo-il, CEO of Ssangyong Motor, said “it is very significant that the company’s operating loss decreased and EBITDA turned to surplus thanks to expanded sales and favourable foreign exchange rate in the 1st quarter,” adding “the company will continue to increase sales and improve profitability through the launch of refreshed models and upgrades.”
