Cosco profit warning says container trade worst hit

CHINA Cosco Holdings has issued a profit warning in a statement to the Hong Kong stock exchange saying the country's biggest shipping line has been hard hit by the global downturn and it expects to post a net loss in the first half.

"The operation of the container vessel fleet of the group recorded a relatively higher loss," said the group in its declaration to the Stock Exchange of Hong Kong.

The board also sent a warning to shareholders that they should be cautious with the company's shares as the group expected reduced earnings for the for the first half ending June 30 as compared to the US$2.2 billion profit made in the same period in 2008.

"The board believes that the reduction in profit was primarily attributable to the material adverse impact of the world recession on the growth of international trade due to the global economic downturn, from which the international shipping industry was severely affected. The operation of the dry bulk vessel fleet of the group also recorded a loss, although the dry bulk shipping market conditions have started to improve," said the statement to the Stock Exchange of Hong Kong.
 

(Source: www.schednet.com)