INTERNATIONAL Container Terminal Services Inc (ICTSI) suffered a first quarter net profit decline of 44 per cent year on year to US$19.51 million on the back of 16 per cent less revenue at $110.04 million.
The Manila-based terminal operator attributed less profit to lower volumes brought about by the decline in global trade and the depreciation of currencies in the countries where ICTSI's ports are located (Philippine peso, Brazilian rea1, euro) relative to the US dollar in the first quarter, a company statement said.
ICTSI said it began in January 2009 to present its financial statement in US dollars as it changed its functional and reporting currency from Philippine peso to US dollar. The Philippine peso depreciated against the US dollar 17 per cent in the first quarter of 2009.
Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter ended March 31 decreased 20 per cent to $38.38 million, from $48.04 million in the same period in 2008.
"In spite of the worst downturn in global trade since 1945, ICTSI has delivered better than expected first quarter results," said ICTSI chairman and president Enrique Razon.
"The decline was mitigated by efforts to reduce costs. This enabled us to maintain operating margins at lower levels of throughput," he said, adding that the first quarter is traditionally the year's worst.
ICTSI handled consolidated volume of 755,958 TEU in the first quarter of 2009, 10 per cent lower than the same period in 2008.
The company's container terminal operations in Asia, comprising terminals in the Philippines, Indonesia, and China, accounted for 474,408 TEU, or 63 per cent of consolidated volumes handled for the period. First quarter volume from its port operations in Asia decreased by four per cent, from the 494,823 TEU it handled in 2008.
Volume from the company's container terminal operations in the Americas, comprising Brazil and Ecuador operations, was lower by six per cent year on year in the first quarter of 2009 at 191,596 TEU. The share of the container volume from the Americas slightly grew from 24 per cent in the first quarter of 2008 to 25 per cent this year, the company said.
Container terminal operations in Europe, Middle East, and Africa (EMEA) comprising terminals in Poland, Georgia, Syria and Madagascar, handled 89,954 TEU in the first quarter of 2009, 37 per cent down mainly due to the lower throughput from the group's Poland and Madagascar port operations, which posted volume declines of 49 per cent and 24 per cent, respectively. The two other port operations in this same segment, Georgia and Syria port operations, posted positive volume growth rates in the first quarter of 2009 of 66 per cent and 17 per cent, respectively. EMEA accounted for 12 per cent of the group's volume in the first quarter of 2009.
First quarter gross revenues from port operations decreased 16 per cent to $92.80 million, from the US$110.04 reported last year due mainly to lower revenue contribution from its key terminal operations in Manila, Brazil, Poland, and Madagascar and the and the depreciation of the Philippine peso, Brazilian real, and euro versus the US dollar in the first quarter.
The Manila-based terminal operator attributed less profit to lower volumes brought about by the decline in global trade and the depreciation of currencies in the countries where ICTSI's ports are located (Philippine peso, Brazilian rea1, euro) relative to the US dollar in the first quarter, a company statement said.
ICTSI said it began in January 2009 to present its financial statement in US dollars as it changed its functional and reporting currency from Philippine peso to US dollar. The Philippine peso depreciated against the US dollar 17 per cent in the first quarter of 2009.
Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter ended March 31 decreased 20 per cent to $38.38 million, from $48.04 million in the same period in 2008.
"In spite of the worst downturn in global trade since 1945, ICTSI has delivered better than expected first quarter results," said ICTSI chairman and president Enrique Razon.
"The decline was mitigated by efforts to reduce costs. This enabled us to maintain operating margins at lower levels of throughput," he said, adding that the first quarter is traditionally the year's worst.
ICTSI handled consolidated volume of 755,958 TEU in the first quarter of 2009, 10 per cent lower than the same period in 2008.
The company's container terminal operations in Asia, comprising terminals in the Philippines, Indonesia, and China, accounted for 474,408 TEU, or 63 per cent of consolidated volumes handled for the period. First quarter volume from its port operations in Asia decreased by four per cent, from the 494,823 TEU it handled in 2008.
Volume from the company's container terminal operations in the Americas, comprising Brazil and Ecuador operations, was lower by six per cent year on year in the first quarter of 2009 at 191,596 TEU. The share of the container volume from the Americas slightly grew from 24 per cent in the first quarter of 2008 to 25 per cent this year, the company said.
Container terminal operations in Europe, Middle East, and Africa (EMEA) comprising terminals in Poland, Georgia, Syria and Madagascar, handled 89,954 TEU in the first quarter of 2009, 37 per cent down mainly due to the lower throughput from the group's Poland and Madagascar port operations, which posted volume declines of 49 per cent and 24 per cent, respectively. The two other port operations in this same segment, Georgia and Syria port operations, posted positive volume growth rates in the first quarter of 2009 of 66 per cent and 17 per cent, respectively. EMEA accounted for 12 per cent of the group's volume in the first quarter of 2009.
First quarter gross revenues from port operations decreased 16 per cent to $92.80 million, from the US$110.04 reported last year due mainly to lower revenue contribution from its key terminal operations in Manila, Brazil, Poland, and Madagascar and the and the depreciation of the Philippine peso, Brazilian real, and euro versus the US dollar in the first quarter.