THE world's No 2 container maker, Hong Kong's Singamas, has posted a 22 per cent decline in year-on-year net profit to US$28.02 million in 2014, drawn on revenues of $1.55 billion, which increased 20.5 per cent.
Revenue growth was driven by new container demand, Singamas said in a Hong Kong stock exchange filing.
"This upturn was encouraged by improving economic conditions in the United States, greater number of large container vessel deliveries and the need for replacement containers," said the Singamas statement.
But while demand grew, prices fell 5.2 per cent to $2,086 per TEU reflecting a decline in raw material prices, particularly corten steel price.
For the segment, profit before taxation and non-controlling interests slipped 2.6 per cent to $45.5 million, although this included a one-off gain of $9.8 million from the sale of two factories in Shunde.
Annual container output increased 30.6 per cent year on year to 686,474 TEU with sales rising 26 per cent to 683,007 TEU sold.
Revenue contributions from dry freight containers came to 70.6 per cent while specialised containers made up 29.4 per cent.
This compared with 73.7 per cent for dry freight boxes and 26.3 per cent for specialised containers in 2013.
Production of US domestic D53 containers surged during the review year, driven by the economic recovery in the United States, with orders doubling from that of 2013.
The much smaller logistics segment continued to provide a stable stream of revenue to the group, amounting to $31.1 million, up from S$29.1 million (US$21.1 million) previously. The total number of containers handled amounted to 3.17 million TEU from 3.02 TEU.
To bolster the logistics business, Singamas increased shareholding in a depot in Xiamen from 28 per cent to 35 per cent in early 2015. The increased stake was motivated by the depot's encouraging performance and ability to provide steady income to the group, said the company.
Singamas expects better times this year because of ultra large containership deliveries from 2015 through 2017, a rebound in the price of corten steel to drive up the price of containers as well the replacement cycle of old containers is expected to gather pace.
CONTAINER
23 March 2015 - 22:03
Singamas profit down 22pc to US$28.02 million as revenue rises 20.5pc
THE world's No 2 container maker, Hong Kong's Singamas, has posted a 22 per cent decline in year-on-year net profit to US$28.02 million in 2014, drawn on revenues of $1.55 billion, which increased 20.5 per cent.
CONTAINER
23 March 2015 - 22:03
Singamas profit down 22pc to US$28.02 million as revenue rises 20.5pc
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