SsangYong posts record sales

Ssangyong Posts Record Sales Since Jul-Sep ’08 Quarter

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Mahindra & Mahindra owned Ssangyong Motor Company announced that it has sold 24,741 units of its vehicles - 9,974 units in the Korean market and 14,767 units in  exports (CKD included) during the first quarter of this year, recording 620.5 billion won of sales income. This is the highest sales since the third quarter of 2008.

The sales record marks a 65 percent increase over the same period of last year. It is especially meaningful since the company has enjoyed a steady recovery since the second quarter of 2010, selling more than 20,000 units for 4 consecutive quarters.

The company’s monthly sales in March, the first month in which it sold over 10,000 units since 2007 and achieved 100 million US dollars inexports, led the increase along with the successful launch of the Korando C in the Korean market. The export growth which increased by 75 percent, as compared with the same period in the previous year, was the locomotive of the thrust.

As per the company, business progressed during the first quarter despite uneasy global circumstances in the Middle East and Japan.

In profit and loss, however, the company has recorded an operational loss of 41.9 billion won, a slight increase over last year. The increase is caused by increased R&D cost, cost of new product launches and raw material purchasing cost as the prices of most raw materials including steel plate, petrochemical products and nonferrous metals have sharply increased.

The M&A process with Mahindra was completed during the past quarter, bringing financial security through debt servicing. The debt ratio, an index of a company’s solvency, dropped to 61 percent from the previous 160 percent.

The sales growth is expected to continue for some time after the record monthly sales exceeding 10,000 units in March, and it will lead to an optimistic outlook for business operations in the future.

“The exports in March exceeded 100 million US dollars and this growth is expected to continue into the future. The best sales record is yet to come,” said Lee Yoo-il, President and CEO of Ssamgyong Motor Company. “As the sales recovery continues with the improved financial status, our business for the rest of the year will be even stronger,” he added.

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