Ssangyong Motor Q2 loss narrows on lower costs

Ssangyong Motor Co., the smallest automaker in South Korea, said Thursday that its net loss narrowed in the second quarter from a year earlier mainly due to decreased costs.

Net loss came to 20.9 billion won ($18.23 million) in the April-June period, compared with a loss of 34.9 billion won a year earlier, the company said in a regulatory filing.

Sales fell 2.3 percent on-year to 712 trillion won. The company posted an operating loss of 21.1 billion won in the second quarter, narrowing from an operating loss of 33.4 billion won a year earlier, it said.

In the first half, the automaker's sales gained 0.5 percent on-year to reach 1.36 trillion won. The company, however, suffered a net loss of 52.4 billion won and an operating loss of 53.7 billion won during the January-June period.

Shares of Ssangyong Motor closed at 5,020 won on the Seoul bourse as of 2:20 p.m., up 0.6 percent from Wednesday's close.

"It is expected to be a more difficult time for the company due to worries about decreased sales caused by a shrinking real economy in the second half of 2012," said the company in a statement.

"To overcome the challenges in the market, we will reinforce sales activities based on newly launched refreshed models such as the Rexton W and the Rodius Euro." (Yonhap News)