HONG KONG sourcing giant Li & Fung posted a 12 per cent fall in year on year net profit to US$539 million in 2014, drawn on revenues of $19.2 billion, which increased 1.4 per cent.
"In spite of tough headwinds, our core customers in our trading business grew and our logistics business continued to have high growth," said group CEO Spencer Fung.
"We fully expect that the investments we have made will position the company for growth in the short, medium and long term," he said.
Revenue from the company's logistics network soared 66 per cent in 2014 to $874 million as the acquisition of giant sea freight forwarder China Container Line impacted financial statements.
An estimated 500,000 TEU were added to Li & Fung's forwarding business when it acquired CCL, the largest NVOCC in China, in March.
This drove up the scale of the sea freight segment and lifted the full year operating profit by 28 per cent to $48 million.
"Our logistics businesses in particular recorded a very good year with many new customer wins in in-country logistics and enhanced capabilities in global freight management from the acquisition of CCL," said Mr Fung.
The group - which supplies the world's biggest retailers, Wal-Mart, Target and Inditex - fell down over all as the company restructured and consumer demand weakened in the US and Europe.
Li & Fung chairman William Fung said the US would be the bright spot this year while Europe would be a challenging market and China would continue its slowdown.
"For 2015, we believe the US economy, which accounts for 60 per cent of our business, should improve against the backdrop of an improving labour market, brighter consumer sentiment and increased consumer spending aided by falling oil prices," he said.
WORLD SHIPPING
22 March 2015 - 21:57
Li & Fung profit falls 12pc to US$539 million as revenues rise 1.4pc
HONG KONG sourcing giant Li & Fung posted a 12 per cent fall in year on year net profit to US$539 million in 2014, drawn on revenues of $19.2 billion, which increased 1.4 per cent.
WORLD SHIPPING
22 March 2015 - 21:57
Li & Fung profit falls 12pc to US$539 million as revenues rise 1.4pc
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