Evergreen Marine Corp., Taiwan's biggest shipping line, returned to a profit in the second quarter after Asia's booming exports of toys, clothes and other goods allowed it to charge more for carrying containers.
Net income was NT$1.28 billion (US$39 million) in the three months ended June 30, compared with a loss of NT$1.16 billion a year earlier. That was better than the NT$260 million profit median estimate in a Bloomberg News survey of three analysts. The figure was derived by subtracting first-quarter profit from six-month result the Taipei-based company released today.
Evergreen Marine follows Neptune Orient Lines Ltd., China Shipping Container Lines Co. and other shipping lines in posting improved earnings as U.S. and European demand for low-cost goods made in Asia allows them to raise their fees. Higher fuel costs and excess capacity crimped profits a year earlier.
"The worst is over for Evergreen Marine," Charles Ma, a Taipei-based analyst at SinoPac Securities Corp., said before the earnings announcement. He has a "buy" rating on the stock. Evergreen Marine's second-quarter sales fell 21 percent from a year earlier to NT$7.21 billion, based on monthly stock exchange filings. Revenue from the company's affiliates and subsidiaries is counted separately. Daphne Tsai, a company spokeswoman, confirmed the derived profit calculation.
Net income was NT$1.28 billion (US$39 million) in the three months ended June 30, compared with a loss of NT$1.16 billion a year earlier. That was better than the NT$260 million profit median estimate in a Bloomberg News survey of three analysts. The figure was derived by subtracting first-quarter profit from six-month result the Taipei-based company released today.
Evergreen Marine follows Neptune Orient Lines Ltd., China Shipping Container Lines Co. and other shipping lines in posting improved earnings as U.S. and European demand for low-cost goods made in Asia allows them to raise their fees. Higher fuel costs and excess capacity crimped profits a year earlier.
"The worst is over for Evergreen Marine," Charles Ma, a Taipei-based analyst at SinoPac Securities Corp., said before the earnings announcement. He has a "buy" rating on the stock. Evergreen Marine's second-quarter sales fell 21 percent from a year earlier to NT$7.21 billion, based on monthly stock exchange filings. Revenue from the company's affiliates and subsidiaries is counted separately. Daphne Tsai, a company spokeswoman, confirmed the derived profit calculation.