Chinese ports investor Cosco Pacific Ltd. on Tuesday reported a lower-than-expected 8% increase in its 2011 net profit due to slowdown in its container handling volume and warned of a similar outcome in 2012 as the European debt crisis continues to weigh on international trade, Fox Business reports.
Cosco Pacific, a unit of shipping firm China Cosco Holdings Ltd. (1919.HK), said its net profit for the 12 months ended Dec. 31 rose to US$388.8 million from US$361.3 million a year earlier. The result was below the average US$403.87 million net profit forecast of eight analysts polled by Thomson Reuters.
Vice Chairman Wang Xingru said in a statement the container handling volume at its terminals recorded a slower growth rate in the second-half of 2011 in the wake of the European debt crisis, and that he expects a continued slowdown in handling throughput this year.
"The group expects to see a slowdown of throughput growth in 2012 compared to 2011 for its terminal business," he said.
However, the company said its Piraeus Terminal in Greece and Guangzhou South China Oceangate Terminal in Nansha, which turned profitable in 2011, will continue to record strong throughput growth and help boost the company's profitability.
Its revenue rose 34% to US$599.2 million from US$446.5 million. The company recommended a final dividend of 17.4 HK cents. It paid a final dividend of 19.3 HK cents a year earlier.
The outlook of the global shipping industry remains challenging in 2012, as higher fuel prices and weaker demand for international trade are clouding the prospects of shipping firms and container operators. According to a forecast by Drewry in December 2011, global port throughput growth in 2012 is expected to decrease by 1.3 percentage points to 5.5%.
Cosco Pacific, which has stakes in container terminals in mainland China, Hong Kong, Singapore, Belgium, Egypt, and Greece, said its 2011 port-handling throughput rose 15.1% to 50.70 million 20-foot equivalent units, or TEUs, compared with 40.04 million TEUs a year earlier. China accounted for 87%, or 43.99 million TEUs, of the total throughput in 2011, up 14% from a year earlier.
Cosco Pacific, a unit of shipping firm China Cosco Holdings Ltd. (1919.HK), said its net profit for the 12 months ended Dec. 31 rose to US$388.8 million from US$361.3 million a year earlier. The result was below the average US$403.87 million net profit forecast of eight analysts polled by Thomson Reuters.
Vice Chairman Wang Xingru said in a statement the container handling volume at its terminals recorded a slower growth rate in the second-half of 2011 in the wake of the European debt crisis, and that he expects a continued slowdown in handling throughput this year.
"The group expects to see a slowdown of throughput growth in 2012 compared to 2011 for its terminal business," he said.
However, the company said its Piraeus Terminal in Greece and Guangzhou South China Oceangate Terminal in Nansha, which turned profitable in 2011, will continue to record strong throughput growth and help boost the company's profitability.
Its revenue rose 34% to US$599.2 million from US$446.5 million. The company recommended a final dividend of 17.4 HK cents. It paid a final dividend of 19.3 HK cents a year earlier.
The outlook of the global shipping industry remains challenging in 2012, as higher fuel prices and weaker demand for international trade are clouding the prospects of shipping firms and container operators. According to a forecast by Drewry in December 2011, global port throughput growth in 2012 is expected to decrease by 1.3 percentage points to 5.5%.
Cosco Pacific, which has stakes in container terminals in mainland China, Hong Kong, Singapore, Belgium, Egypt, and Greece, said its 2011 port-handling throughput rose 15.1% to 50.70 million 20-foot equivalent units, or TEUs, compared with 40.04 million TEUs a year earlier. China accounted for 87%, or 43.99 million TEUs, of the total throughput in 2011, up 14% from a year earlier.