Ssangyong Motor(President & CEO Lee Yoo-il) part of the US$14.4 billion Mahindra Group, announced that the company recorded 26,441 vehicles in sales volume (including CKD), KRW 644 billion in revenues and KRW 32.6 billion in operating loss. In the first quarter of 2012, Ssangyong registered a 6.9 percent growth in sales volume, a 3.8 percent rise in revenues and a 22.0 percent decrease in operating loss compared to the same period of the previous year despite overall sluggish demand caused by the economic downturn in domestic as well as major overseas markets.
The domestic sales in the first quarter recorded a 3 percent drop due to shrinking demand in the national auto market, while sales in exports recorded a 13 percent rise compared to the same period last year thanks to increased sales in Russia, Africa, the Middle East and Asia-Pacific markets. Above all, the Korando Sports and the Korando C led the sales momentum. The sales of the Korando Sports, which has received a positive response from the market since its launch in January 2012, stood at 9,168 vehicles with a 50.7 percent (6,085 vehicles) increase while those of the Korando C stood at 9,257 vehicles, with a 29.4 percent (7,155 vehicles) increase in domestic sales and exports as compared to the same period last year.
Ssangyong’s Profit and Loss statement also showed an improvement as the operating loss decreased to KRW 32.6 billion, an improved figure compared to the same period last year (KRW 41.9 billion) as well as compared to the previous quarter (KRW 47.4 billion). The company’s EBITDA, a key operating performance indicator for a company’s operating cash flow, showed a small profit and signals an overall bright outlook for Ssangyong.
The company pointed out that the results for this quarter are not comparable with the same period of last year, since the 1st quarter of 2011 included the effect of debt forgiveness income which amounts to KRW 46 billion. 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 favorable 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.”
