Singapore-listed Chinese shipbuilder COSCO Corp reported a 53 percent fall in its second quarter net profit on Monday, saying it was hurt by lower contributions from dry bulk shipping and shipyard operations as well as higher income tax, Reuters reports. The firm posted net profit of S$31.9 million ($26.6 million) for the three months ended June, down from S$68.4 million a year earlier.
"The group maintains a cautious outlook for 2011 as the global economy remains fragile and its recovery uneven with growing concerns over the sovereign debt crisis in Europe and other places," COSCO said in a statement.
It added that the gradual appreciation of the Chinese yuan against the U.S. dollar, increasing interest rates and a potential wage hike in China, as well as greater raw material prices, may weigh on the operating margins of its shipyard operations.
"The group maintains a cautious outlook for 2011 as the global economy remains fragile and its recovery uneven with growing concerns over the sovereign debt crisis in Europe and other places," COSCO said in a statement.
It added that the gradual appreciation of the Chinese yuan against the U.S. dollar, increasing interest rates and a potential wage hike in China, as well as greater raw material prices, may weigh on the operating margins of its shipyard operations.