SEOUL, July 28 (Yonhap) -- SsangYong Motor Co., the South Korean unit of Indian carmaker Mahindra & Mahindra Ltd., said Friday it shifted to a net loss in the second quarter from a year earlier due to lower demand in global markets and a strong won.
In three months ended June 30, SsangYong Motor logged a net loss of 4 billion won (US$3.6 million) in the April-June period, a turnaround from a net profit of 18 billion won a year earlier, the company said in a statement.
"Lower demand from global markets weighed on the quarterly results despite increased domestic sales. Moreover, the won's strength against the dollar cut into the carmaker's overseas earnings (when repatriated into the local currency)," the statement said.
SsangYong sold 29,119 vehicles in the domestic market in the second quarter, up 3.7 percent from 28,074 units a year earlier. But its exports slumped 46 percent to 6,998 from 12,837 over the cited period, it said.
The SUV-focused carmaker also posted an operating loss of 6.6 billion won in the June quarter, shifting from an operating profit of 19.3 billion won a year ago. Sales fell 6.3 percent on-year to 903.1 billion won from 964.0 billion won.
In the January-June period, SsangYong shifted to a net loss of 17.9 billion won from a net profit of 20.4 billion won in the year earlier period.
Mahindra & Mahindra owns a 72.85 percent stake in SsangYong Motor. It is the flagship affiliate of Mahindra Group, an $18 billion Indian conglomerate with businesses that range from the country's largest SUV maker to farm equipment and financial services.
kyongae.choi@yna.co.kr |
