Mahindra’s Ssangyong Motors records sales of $551 million – increase of 3.8% over last year

Ssangyong Motors, a part of the $14.4 billion Mahindra Group today announced that the company sales had reached 26,441 units while revenues stood at KRW 644 billion ($551 million) for Q1 2012. Operating loss declined to KRW 32.6 billion ($27.9 million) from KRW 41.9 billion ($35.9 million) recorded last year. During the first quarter of 2012, the company registered 6.9% growth in sales that is up 3.8% in revenues and 22.0% decrease in operating loss as compared to Q1-11.

These figures were despite sluggish demand and economic downturn experienced in some of the domestic and overseas markets. Sales in exports recorded a 13% increase due to increased sales in countries like Russia, Middle East, Africa and Asia Pacific. Korando Sports and Korando C is what led these sales. Korando Sports was launched in January 2012 and yet sales reached 9,168 units while Korando C sales stood at 9,257 units – a 29.4% increase in domestic sales and exports as compared to the same period in the previous year.

The company’s EBITDA which is a major operating performance indicator for operating cash flow too showed a marginal increase with the future looking upwards for Ssangyong. Company’s operating loss decreased and EBITDA turned to surplus due to expanding sales and better foreign exchange rates in the first quarter. The company hopes to continue in this same vein as they plan on launching refreshed models and upgrades.

Auto News Release

Ssangyong Motor records sales of KRW 644 billion in Q1

Up 3.8 percent as compared to last year

Ssangyong Motor recorded sales increase for three consecutive months, with an increase of 6.9 percent in Q1 of 2012 as compared to the same period last year, on the back of robust sales of the Korando Sports
? Ssangyong’s Profit and Loss structure has improved due to the decreased operating deficits and a surplus in EBITDA
? Ssangyong will strive to increase sales through launch of refreshed models and upgrades

Ssangyong Motor(President & CEO Lee Yoo-il; www.smotor.com), part of the US$14.4 billion Mahindra Group, announced that the company recorded 26,441 vehicles in sales volume (including CKD), KRW 644 billion in revenues and KRW 32.6 billion in operating loss.

In the first quarter of 2012, Ssangyong registered a 6.9 percent growth in sales volume, a 3.8 percent rise in revenues and a 22.0 percent decrease in operating loss compared to the same period of the previous year despite overall sluggish demand caused by the economic downturn in domestic as well as major overseas markets.

The domestic sales in the first quarter recorded a 3 percent drop due to shrinking demand in the national auto market, while sales in exports recorded a 13 percent rise compared to the same period last year thanks to increased sales in Russia, Africa, the Middle East and Asia-Pacific markets.

Above all, the Korando Sports and the Korando C led the sales momentum. The sales of the Korando Sports, which has received a positive response from the market since its launch in January 2012, stood at 9,168 vehicles with a 50.7 percent (6,085 vehicles) increase while those of the Korando C stood at 9,257 vehicles, with a 29.4 percent (7,155 vehicles) increase in domestic sales and exports as compared to the same period last year.

Ssangyong’s Profit and Loss statement also showed an improvement as the operating loss decreased to KRW 32.6 billion, an improved figure compared to the same period last year (KRW 41.9 billion) as well as compared to the previous quarter (KRW 47.4 billion).

The company’s EBITDA, a key operating performance indicator for a company’s operating cash flow,  showed a small profit and signals an overall bright outlook for Ssangyong.

The company pointed out that the results for this quarter are not comparable with the same period of last year, since the 1st quarter of 2011 included the effect of debt forgiveness income which amounts to KRW 46 billion.

Lee Yoo-il, CEO of Ssangyong Motor, said “it is very significant that the company’s operating loss decreased and EBITDA turned to surplus thanks to expanded sales and favorable foreign exchange rate in the 1st quarter,” adding “the company will continue to increase sales and improve profitability through the launch of refreshed models and upgrades.”