Terminal operator Cosco Pacific's 2009 profit fell 37 per cent to US$172.5 million year on year while the company's second half profit declined 44 per cent to US$68 million, according to the company's annual report.
Blaming declines on the global downturn, Cosco Pacific said the company handled fewer containers because of poor US and European consumer demand on the back of high unemployment and a poor housing market that dampened sales of Asian clothes and furniture.
But Cosco Pacific revenue increased 3.4 per cent to $3.49 billion from $3.37 billion in 2008, the company said. "The revenue was derived from container leasing, management and sale businesses and container terminal businesses with $2.29 billion (2008: $2.52 billion) and $119,593,000 (2008: $85,353,000) respectively.
For the container terminal operations and related businesses with controlling stakes, revenue from 24 container terminal operations and related businesses amounted to $119,593,000 in 2009 (2008: $85,353,000), a 40.1 per cent year on year increase, said the statement to the Hong Kong stock exchange.
Revenue from container leasing, management and sale businesses included leasing income and revenue from disposal of returned boxes, the company said.
For container leasing income, as the fleet capacity of owned containers and sale-and-leaseback containers decreased to 860,482 TEU by the end of 2009 (2008: 865,296 TEU), income fell $198,069,000 for the year (2008: $202,437,000).
Revenue from container management was $6.47 million, a 23.6 per cent decrease from $8.46 million last year. Revenue from leasing of reefer-container generator sets was $2.21 million, an 8.5 per cent increase from $2.03 million recorded last year, said the company.