Top box maker sees profit plunge 67%
China International Marine Containers (CIMC), the world's largest maker of containers by output, saw its first-half net profit fall 67 percent because of weak demand for containers in a slowing global economy.
Net profit for the six months ended June 30 totalled US$147 million, down from $441.81 million a year earlier, reported Dow Jones Newswires.
Revenue dropped 25 percent to $4.3 billion from $5.74 billion, the company said.
CIMC is 26 percent owned by Chinese port investor and operator China Merchants Holdings (International) Co. Government-controlled shipping conglomerate China Ocean Shipping (Group) Co owns about 22 percent.
CIMC accounts for half of the global output of containers, followed by Hong Kong-listed Singamas Container Holdings with 24 percent.
Global demand for containers was robust in 2010 and the first half of 2011. However, in the second half of last year, demand began to falter in tandem with the weakening of the global macroeconomic environment.
The average price for a twenty-foot-equivalent unit dry bulk container was around $2,600 as of July, rebounding slightly from around $2,300 at the start of this year but still well below the $3,000 peak it hit in the first half of 2011.
Despite the recent price recovery, analysts say the benefits won't necessarily translate into better financial results for the rest of this year until containers are actually produced and delivered to customers.
While CIMC is focused on containers, its other major business areas include special-purpose vehicles and heavy trucks; equipment for the energy, chemicals and liquid food industries; and offshore engineering.