- Posted a sales volume of 3.1193 trillion won, an operating profit of 44.1 billion won, and an income before income taxes of 11.6 billion won
- Returned into the black in three years after 2004 and recorded the highest level of exports since the company’s founding
- Created a better corporate image by making improvements to internal conditions and the profit/loss structure
SsangYong Motor (CEO and President Hyung-Tak, Choi;www.smotor.com) announced on February 13 that it achieved a net income of 11.6 billion won last year despite difficult economic conditions at home and abroad, such as high oil prices and the strong won.
In 2007, SsangYong Motor sold a total of 131,637 vehicles, including domestically sold vehicles of 60,616 units and exports (including CKD) of 71,021 units, thereby recording a sales volume of 3.1193 trillion won, an operating profit of 44.1 billion won, an income before income taxes of 11.6 billion won, and a net income of 11.6 billion won.
This business performance was made possible by corporate-level efforts to boost competitiveness aimed at securing profitability, wage negotiations without any disputes, successful advancements into overseas markets, and the continuous cost reduction. Total sales posted an increase of 10.1 percent from 2006 (119,540 units). The company also witnessed its sales volume and operating profit increase by 5.7 percent and 61.5 percent, respectively. SsangYong Motor also returned to the black in three years after 2004 in terms of the income before income taxes and net income.
Domestic sales went up 8.3 percent from 2006 (55,947 units). The models that were sold the most were the Actyon Sports (15,463 units), which is the only pickup truck in Korea and ensures an outstanding level of economical efficiency and the New Kyron (14,460 units), which was released in April last year. These models posted the highest increase in sales from 2006, recording 41.6 percent and 45.7 percent, respectively.
Exports rose by 11.7 percent from 2006 (63,593 units). In terms of CBU, the New Kyron (21,898 units) and the Rexton II (15,743 units) sold the most, gaining strength from an expansion of new exports markets and an increase in the sales volume in China made possible by actively using the infrastructure of the SAIC Group in China. The Actyon Sports (8,201 units), which was released in May 2006, recorded the highest level of increase (273.6 percent). CKD exports also rose by 97.3 percent (7,020 units) from 2006, resulting from an increase in exports to China and Russia.
Thanks to an increase in CKD exports, SsangYong Motor achieved the highest export performance ever since the company’s founding. In 2007, the company’s level of exports (54 percent) was higher than that of domestic sales (46 percent), resulting in the company continuously maintaining an export-led sales structure for two consecutive years. The proportion of exports, which was merely 18.7 percent in 2000, skyrocketed to 54 percent in 2007. This is the result of continuous efforts to make inroads into overseas markets, such as Turkey and Venezuela, and the strengthening of the company’s global sales competencies.
SsangYong Motor returned into the black in 2007, the first year after announcing the company’s mid- to long-term development strategies and corporate vision. Improvements in the company’s profit/loss structure, resulting from its return into the black, as well as in internal conditions, such as stable labor-management relations, have led to the creation of a better corporate image.
CEO and President Hyung-Tak, Choi said, “We were able to achieve the goal we set at the beginning of last year which was to return into the black, thanks to the concerted efforts of all employees, despite difficult conditions. This achievement holds great significance to us since it was made on the first year after announcing the company’s mid- to long-term development strategies and corporate vision. I ask that we make efforts to fully establish the company as a global corporation by maintaining a positive labor-management relationship and boosting competitiveness this year. To this end, we should successfully release the Chairman W, a flagship sedan, and actively advance into overseas markets, in order to record a surplus for two consecutive years.”