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CreateTime:2008-04-30 Editor:liaoyan
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COSCO Pacific Ltd, Asia's third-largest container-terminal operator, has boosted its first-quarter profit 16 percent on China's surging trade and demand for cargo-boxes.
Net income jumped to US$65.8 million, or 2.93 cents a share, from US$56.9 million, or 2.53 cents, a year earlier, the Hong Kong-based company said yesterday in a statement to the city's stock exchange. According to Bloomberg News, its sales rose 13 percent to US$73.6 million.
Cosco Pacific's 19 global terminal ventures boosted total volume 22 percent helped by China's increasing imports as well as its rising exports of toys, furniture and other goods. The company has also expanded its container-leasing fleet by about a fifth as rising global trade spurs demand from shipping lines.
"The earnings are better than expected on the unexpected increase in the revenue from container-leasing, which was boosted by China's rising imports," said Edward Wong, an analyst at Quam Ltd in Hong Kong. The company "will do much better in 2009 when many newly invested ports start operating."
Cosco Pacific, a unit of China Cosco Holdings Co, has added facilities in Ningbo, Guangzhou and Egypt to expand its business.
The company's terminal ventures moved 10.4 million boxes in the first quarter, according to the statement. Its container fleet grew to 1.6 million standard 20-foot boxes.
The company's shares have fallen 27 percent this year amid concerns about a global slowdown and weak demand for cargo-box leasing. Deutsche Bank AG and Goldman Sachs Group Inc both downgraded the stock earlier this month, citing the box-leasing unit. The stock fell 2.3 percent to HK$15.26 (US$1.96) yesterday, before the earnings statement.
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