Cosco box making blamed for 36pc profit fall in 2008

COSCO Pacific Limited has posted a profit attributable to shareholders of US$274.72 million for the year ending December 31, representing a decrease of 35.8 per cent from a year earlier, largely because of a fall in earnings from its container manufacturing unit CIMC.

Its equity in CIMC rose from 16.54 per cent in late 2007 to 21.8 per cent in 2008. But a price rise in raw materials and a global downturn caused significant margin erosion, yielding a 41.8 profit fall to $39.08 million.

Consolidated turnover last year rose by 13.1 per cent to $337.97 million.

The group's core terminal operating division generated a profit of $128 million, which is almost the same level as in 2007. Its container-leasing division made a profit of $141 million, up 19.5 per cent against 2007.

Container throughput increased 17.7 per cent to 45,878,875 TEU. The group also successfully bid for a concession to operate and develop Piers 2 and 3 of the Piraeus Port in Greece. The container fleet size increased 6.7 per cent to 1,621,222 TEU in 2008.

The group's container throughput slid significantly in the fourth quarter of 2008. Besides the organic growth, major growth drivers came from the new container berths in China and overseas that commenced operation in 2007 and 2008. These include Guangzhou South China Oceangate Terminal, Ningbo Yuan Dong Terminal and the expansion of Yantian Terminal Phase III in China.

For overseas ports, Suez Canal Terminal had its first full year contribution to the group in 2008 and COSCO-PSA Terminal added a new container berth in January 2008. Moreover, the development and operations of Dalian Port Container Terminal and Antwerp Terminal became more mature in 2008, with annual throughput increasing 94.9 per cent and 37.8 per cent year on year respectively.

Source: CRIEnglish