Ssangyong Motor swings to loss in Q3 on weak sales

(ATTN: UPDATES share price in 5th para; ADDS more details in last three paras)
SEOUL, Oct. 29 (Yonhap) -- Ssangyong Motor Corp., the South Korean unit of
China's Shanghai Automotive Industry Corp., said Wednesday that it suffered a
loss in the third quarter as rising fuel costs and an economic slump reduced
domestic sales.
The automaker posted a loss of 28.2 billion won (US$20 million) in the
July-September period, compared with a profit of 1.2 billion a year earlier, the
company said in a statement.
The third-quarter loss, however, narrowed from a loss of 35.7 billion won in the
previous quarter, it said.
Sales dropped 8.2 percent to 684 billion won over the cited period, and its
operating loss reached 48.3 billion won, according to the automaker.
Shares of Ssangyong Motor were trading at 1,025 won on the Seoul bourse as of
1:40 p.m., down 7.24 percent.
South Korea's smallest automaker has been hit hard since early in the year by
high oil prices because its line-up is dominated by fuel-guzzling sport-utility
vehicles and large-size sedans.
Ssangyong's vehicle sales at home plunged 31 percent during the third quarter, as
rising fuel costs prodded customers to favor smaller and more fuel-efficient cars
made by domestic rivals such as Hyundai Motor Co.
In the first nine months of this year, total sales decreased 23 percent to 76,123
units, according to the company.
In a separate filing, Ssangyong said it suffered a loss of 29.8 billion won from
currency hedging in the first nine months of the year.
sam@yna.co.kr
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