Ssangyong Motor slips back to operating loss in Q1

Ssangyong Motor Co., South Korean unit of India’s Mahindra & Mahindra Ltd., slipped back to the red in the first quarter of this year due to sluggish overseas sales and unfavorable foreign exchange conditions.

The automaker said Friday in a regulatory filing that it posted an operating loss of 15.5 billion won ($13.6 million) in the January - March period, reversing from a profit of 8.07 billion a year earlier. It also booked a net loss of 13.9 billion, compared with an income of 2.34 billion won a year ago. Revenue slipped 3.01 percent on year to 788.7 billion won.

Shares of Ssangyong Motor finished Friday down 1.82 percent at 7,540 won.

The carmaker whose sales hinges on sports utility vehicles - mostly Tivoli - blamed poor figures from overseas on top of weaker U.S. dollar against the Korean won for the disappointing results in the first quarter.

The automaker’s overall shipment rose 1.7 percent on year in the first quarter to 34,228 units mostly led by 23.5 percent jump in domestic sales. Overseas sales that made up 29.6 percent in last year’s revenue dropped 10.6 percent in the first quarter. Stronger won also strained its income balance.

The automaker banks on its new full-size SUV G4 Rexton slated for launch next month to boost its sales along with its flagship compact SUV Tivoli, said Ssangyong Motor chief executive Choi Johng-sik.

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