Ssangyong Motor's net loss widens in Q2

SEOUL, July 22 (Yonhap) -- Ssangyong Motor Co., South Korea's smallest automaker, said Friday it lost more money in the second quarter than a year earlier mainly due to a rise in costs, despite a surge in sales. Net losses reached 34.9 billion won (US$33.0 million) in the April-June period, compared with a net loss of 29.3 billion won in the same period last year, the company said in a regulatory filing. Sales jumped 35.4 percent on-year to 728.6 billion won in the second quarter, but operating losses more than doubled to 33.4 billion won from 15.3 billion won, the company said. "The rise in net losses was brought on by a rise in wages after the company graduated from court receivership and was bought by India's top utility vehicle maker Mahindra & Mahindra Ltd. in March," the company said. It also said losses were brought on by the rise in commodities prices such as steel sheets and petrochemical materials and investments made to launch new vehicles. The company, however, said its profitability should improve in the second half on the momentum of strong sales. Since Mahindra took over the company's sales have exceeded 10,000 per month. In the second quarter, Ssangyong's overall sales reached 31,132 units, up 45 percent from the same period last year. Exports surged 59 percent to 20,860 vehicles, with domestic sales hitting 10,272 units for a gain of 23 percent from the year before. Export numbers were the highest reached since the fourth quarter of 2006. For the first half of this year, the carmaker said overall sales jumped 53 percent to 55,873 vehicles, with exports moving up 65 percent to 35,627 units. Its sales total exceeded 1.34 trillion won for a gain of 43 percent compared to the year before although operating profits were in the red by 75.3 billion won. Net loss reached 32.3 billion won in the six-month period, smaller than a 65.9 billion won deficit a year earlier, Ssangyong said.