Hanjin Shipping Co, South Korea's top container line, said that it swung to a net loss in the second quarter from a year earlier due to higher fuel costs and falling freight rates.

It added that net loss came to KRW 273.9 billion in the April to June 2011 period as compared with a profit of KRW 206.2 billion a year ago.

Sales fell by 1.53% YoY to KRW 2.4 trillion over the cited period. The shipper also turned in an operating loss of KRW 170.2 billion in the second quarter.

Hanjin Shipping said that sales for its container shipping business rose 13.2% YoY but the division posted an operating loss of KRW 172 billion. Its bulk shipping business saw an operating loss of KRW 150 million.

Hanjin Shipping said its profit will improve in the third quarter on the strength of growing demand and cost cutting efforts. The shipper also said it swung to a net loss of KRW 414.6 billion in the first half, while its sales rose by 5.62% YoY to KRW 4.67 trillion during the six month period.

(Sourced from www.yonhapnews.co.kr)