SOUTH Korea’s Hyundai Glovis and Pan Ocean performed well during the first quarter of 2025, meeting market expectations.

Hyundai Glovis achieved its highest ever operating profit for the quarter, supported by excellent performance across all businesses, a favourable currency impact and a focus on high margin businesses.

In the first quarter, the company recorded operating income of Won501.9bn($350m) and sales of Won7.2trn, up 30.4% and 9.7%, respectively, from the corresponding period last year.

In the logistics segment, sales reached Won2.4trn and operating profit was Won198.1bn, up 8.1% and 9%, respectively, year on year.

“The increase in overseas finished vehicle sales led to inland transportation sales,” Hyundai Glovis said. “The increase in import and export logistics sales is also positively correlated with the good results.”

In the shipping segment, PCTC contract renewals and an increase in high-rate non-affiliate volume, as well as improvements in cost structure through efficient fleet operations, resulted in a favourable performance, with revenue of Won1.2trn and operating profit of W132.7bn, up 9.2% and 66.3%, respectively, over the corresponding period last year.

The distribution business generated sales of Won3.5tn and operating profit of Won166.6bn.

“Hyundai Glovis’s first-quarter results were in line with market expectations,” Korea Investment & Securities analyst Choi Ko-un said in a report. “The company has the most diversified business structure and solid customer base among its competitors.”

Commenting on the market forecast following the 25% tariff on fully assembled vehicles imported into the US, Hyundai Glovis chief executive Lee Kyoo-bok said: “We believe that the direct impact on the company will be limited if volumes are maintained.

“We have confirmed that our major customers are maintaining their export plan to the US. Therefore, contrary to market concerns, the tariff is not expected to have a significant impact on our business performance in the short term.”

Speaking of the US Trade Representative’s plan to impose port fees on foreign-made vehicle carriers, Lee said: “Considering that all competitors, including us, are in the same environment, we will formulate our future strategy by comprehensively considering the market and all competitors’ reactions.”

Meanwhile, Pan Ocean has announced an operating profit of Won113.3bn and sales of Won1.3trn, up 15.4% and 42.8%, respectively, on the same period last year. The increase in revenue was due to growth in transport volumes and grain sales. As Pan Ocean’s flagship business, the bulk service transports various dry bulk commodities, including grain.

“Operating profit exceeded the market forecast of Won104bn, reflecting the improvement in the non-dry bulk business,” Pan Ocean said.

“Although the market deteriorated due to the seasonal off-season and the intensification of trade tensions between the US and China, our efforts to strengthen market responsiveness in order to expand our business portfolio in the long term, such as entering the liquefied natural gas business, have been effective.”