Ssangyong Motor Co., South Korea's smallest carmaker, said Thursday it narrowed a net loss in the first quarter of this year, helped by rising sales and cost-cutting measures.
Ssangyong, which has been under bankruptcy protection since February last year, lost 25.7 billion won (US$22.7 million) in the January-March period, a sharp improvement from a net loss of 265.6 billion won for the same period last year, the company said in a regulatory filing.
First-quarter operating loss also narrowed to 12.3 billion won, compared with a loss of 125.6 billion won. Sales jumped 71 percent to 399.7 billion won, according to the filing.
"Restructuring efforts and better-than-expected sales significantly boosted profitability," said Lee Yoo-il, a court-appointed manager at Ssangyong, in a separate statement. Last year, about one-third of Ssangyong workers left the company as part of its painful restructuring.
This week, Ssangyong opened a bid to sell a majority of its stake in a deal that is crucial for its viability in the long term.
Still, many analysts are skeptical over Ssangyong's future with its line-up focused on expensive, gas-guzzling sport-utility vehicles.
Ssangyong will receive letters of intent from potential buyers by May 28. A preferred bidder is expected to be selected in August, according to the company officials.
Local media have reported the stake is estimated to be worth between 300 billion won and 500 billion won, given the company's market capitalization of some 460 billion won.//Yonhap
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