Evergreen Marine, the world's fourth-largest container line, swung to a steep loss in the first quarter of 2009 on falling prices and lower volumes due to the global economic downturn, the firm said on Thursday.
The loss of T$2.738 billion ($82 million) compared to a profit of T$367.11 million a year earlier and was well below the forecasts of two analysts polled by Reuters, who were looking for an average loss of T$942 million.
First-quarter revenue also dropped sharply to T$3.626 billion, from T$6.107 billion a year earlier.
"If the economy has a bad year, then cargo loads go down with it," a representative of the Taiwan-based shipper said.
As the economic downturn hit the United States and Europe, Evergreen's long-haul routes suffered a steep decline in demand, forcing the company to lower prices, shipping analysts said.
"Shipping prices have gone down since last October, due to the global economic downturn, and they are still dropping, so the whole situation isn't too good," said Stone Lin, an analyst with Yuanta Securities in Taipei.
Evergreen, founded in 1968 and Taiwan's largest shipper with 176 vessels, is also forecast to lose money in the second quarter, he said.
But business may pick up in the second half of 2009 along with the global economy, said Connie Chen, an analyst with SinoPac Securities in Taipei.
Evergreen's profit tumbled by 92 percent in the fourth quarter of 2008 as the economic downturn affected global trade. The company's consolidated income dropped to T$1.019 billion in the fourth quarter from T$12.024 billion a year earlier, the company said in a statement.
Revenue dropped 11 percent to T$129 billion in the same quarter year on year.
The loss of T$2.738 billion ($82 million) compared to a profit of T$367.11 million a year earlier and was well below the forecasts of two analysts polled by Reuters, who were looking for an average loss of T$942 million.
First-quarter revenue also dropped sharply to T$3.626 billion, from T$6.107 billion a year earlier.
"If the economy has a bad year, then cargo loads go down with it," a representative of the Taiwan-based shipper said.
As the economic downturn hit the United States and Europe, Evergreen's long-haul routes suffered a steep decline in demand, forcing the company to lower prices, shipping analysts said.
"Shipping prices have gone down since last October, due to the global economic downturn, and they are still dropping, so the whole situation isn't too good," said Stone Lin, an analyst with Yuanta Securities in Taipei.
Evergreen, founded in 1968 and Taiwan's largest shipper with 176 vessels, is also forecast to lose money in the second quarter, he said.
But business may pick up in the second half of 2009 along with the global economy, said Connie Chen, an analyst with SinoPac Securities in Taipei.
Evergreen's profit tumbled by 92 percent in the fourth quarter of 2008 as the economic downturn affected global trade. The company's consolidated income dropped to T$1.019 billion in the fourth quarter from T$12.024 billion a year earlier, the company said in a statement.
Revenue dropped 11 percent to T$129 billion in the same quarter year on year.