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<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 9, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Cosco Pacific posts 56% drop in H2 profit
Container-traffic growth slowed for the four consecutive months ending Dec
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(HONG KONG) Cosco Pacific Ltd, Asia's third largest container-terminal operator, posted a 56 per cent drop in second-half profit as the company did not repeat one-time gains of the previous year and the global recession dampened trade.
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</TD></TR><TR class=caption><TD>Trying times: Earnings from Cosco Pacific's Chinese ports of Shanghai, Tsingtao, Yantian and Hong Kong may fall more than 10% this year, says an analyst </TD></TR></TBODY></TABLE>Net income fell to US$121.6 million from US$279.3 million a year earlier, according to Bloomberg's calculation of second-half results from full-year numbers announced by the company yesterday. Sales increased 16 per cent to US$175.9 million.
Cosco Pacific's container-traffic growth slowed for the four consecutive months ending December as recessions in the US and Europe reduced shipments of toys, furniture and other goods. The weakening demand has also hurt profits at larger rivals Hutchison Port Holdings and PSA International, the world's two largest container terminal operators.
'Cosco Pacific is going through a hard time every single day,' said Geoffrey Cheng, an analyst at Daiwa Institute of Research Ltd. Earnings from Chinese ports of Shanghai, Tsingtao, Yantian and Hong Kong may fall more than 10 per cent this year, he said. About 90 per cent of world trade is carried by sea.
The global economy is likely to shrink for the first time since World War II, and trade will decline by the most in 80 years, the World Bank said on March 8. The assessment is more pessimistic than an International Monetary Fund report in January predicting 0.5 per cent global growth this year.
'The global recession will inevitably result in a further decline in container shipping volume,' Xu Minjie, Cosco vice-chairman and managing director, said in the statement. 'The terminal and container leasing industries are in a difficult situation which is highly likely to last for the full year.' The company's net income may be US$270 million in 2009, according to the median estimate in a Bloomberg survey of nine analysts.
Cosco Pacific, the container-terminal unit of China's biggest shipping group, handled 45.9 million 20-foot equivalent boxes in 2008, a gain of 18 per cent. The company operates 20 facilities worldwide. Volumes declined 7.8 per cent in the first two months of this year.
Net income from the container-terminal business was little changed at US$128.2 million, according to the statement. Profit from container-leasing increased 20 per cent to US$141 million.
Hundreds of vessels have been laid up worldwide as container lines try to boost rates depressed by US and European recessions. Still, with shipyards set to deliver the largest number of container ships by capacity in at least 15 years in 2009, lines may continue to struggle to post profits.
This year, global container traffic may fall 3 per cent, according to Morgan Stanley.
Cosco Pacific proposed a final dividend of 1.34 cents, compared with 3.92 cents a year earlier, it said. It paid a special final dividend of 2.3 cents in 2007. -- Bloomberg
</TD></TR></TBODY></TABLE>
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Cosco Pacific posts 56% drop in H2 profit
Container-traffic growth slowed for the four consecutive months ending Dec
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20>
</TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20></TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20></TD><TD>Feedback</TD></TR></TBODY></TABLE>(HONG KONG) Cosco Pacific Ltd, Asia's third largest container-terminal operator, posted a 56 per cent drop in second-half profit as the company did not repeat one-time gains of the previous year and the global recession dampened trade.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Trying times: Earnings from Cosco Pacific's Chinese ports of Shanghai, Tsingtao, Yantian and Hong Kong may fall more than 10% this year, says an analyst </TD></TR></TBODY></TABLE>Net income fell to US$121.6 million from US$279.3 million a year earlier, according to Bloomberg's calculation of second-half results from full-year numbers announced by the company yesterday. Sales increased 16 per cent to US$175.9 million. Cosco Pacific's container-traffic growth slowed for the four consecutive months ending December as recessions in the US and Europe reduced shipments of toys, furniture and other goods. The weakening demand has also hurt profits at larger rivals Hutchison Port Holdings and PSA International, the world's two largest container terminal operators.
'Cosco Pacific is going through a hard time every single day,' said Geoffrey Cheng, an analyst at Daiwa Institute of Research Ltd. Earnings from Chinese ports of Shanghai, Tsingtao, Yantian and Hong Kong may fall more than 10 per cent this year, he said. About 90 per cent of world trade is carried by sea.
The global economy is likely to shrink for the first time since World War II, and trade will decline by the most in 80 years, the World Bank said on March 8. The assessment is more pessimistic than an International Monetary Fund report in January predicting 0.5 per cent global growth this year.
'The global recession will inevitably result in a further decline in container shipping volume,' Xu Minjie, Cosco vice-chairman and managing director, said in the statement. 'The terminal and container leasing industries are in a difficult situation which is highly likely to last for the full year.' The company's net income may be US$270 million in 2009, according to the median estimate in a Bloomberg survey of nine analysts.
Cosco Pacific, the container-terminal unit of China's biggest shipping group, handled 45.9 million 20-foot equivalent boxes in 2008, a gain of 18 per cent. The company operates 20 facilities worldwide. Volumes declined 7.8 per cent in the first two months of this year.
Net income from the container-terminal business was little changed at US$128.2 million, according to the statement. Profit from container-leasing increased 20 per cent to US$141 million.
Hundreds of vessels have been laid up worldwide as container lines try to boost rates depressed by US and European recessions. Still, with shipyards set to deliver the largest number of container ships by capacity in at least 15 years in 2009, lines may continue to struggle to post profits.
This year, global container traffic may fall 3 per cent, according to Morgan Stanley.
Cosco Pacific proposed a final dividend of 1.34 cents, compared with 3.92 cents a year earlier, it said. It paid a special final dividend of 2.3 cents in 2007. -- Bloomberg
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