Daewoo Posts Operating Profit In Q3

SEOUL, South Korea AP reports that Daewoo Motor Co. said Monday it posted an operating profit in the third quarter, raising hopes of a successful takeover deal with General Motors Corp.

The company, which is operating under bankrupcty protection, said its operating profit was 35 billion won ($26.9 million)in the July-September period. An operating profit excludes payments due on debt.

It was the second consecutive quarterly operating profit for Daewoo.

After posting an operating loss of 46.5 billion won ($35.7 million) in the first quarter, it had an operating profit of 22.7 billion won ($17.4 million) profit in the second quarter.

``The progress is faster than expected and shows that a profit-based business structure has begun to take root,'' Daewoo Motor said in a statement.

Aggressive cost-cutting measures and increased sales since GM signed a preliminary takeover deal with creditors on Sept. 21 helped the progress, it said.

Daewoo's average daily sales rose to 656 vehicles from 499 after GM signed the takeover deal, the statement said.

Experts say Daewoo's operating profit was possible because all of its debts, estimated at $17 billion, have been frozen under court receivership. The company went bankrupt in November 2000.

GM is in the middle of a final due diligence for a conclusive takeover deal with Daewoo by the end of the year.