CHINA International Marine Containers (CIMC), the Shenzhen company that makes half the world's containers, posted a year-on-year 21 per cent decline in 2013 net profits to CNY1.3 billion (US$216 million), drawn on revenues of CNY57.8 billion, up 6.5 per cent.
The company has seen the contribution from its container division fall from 55 per cent of revenue two years ago to 37 per cent revenue last year,accounting for 32 per cent of gross profit.
The remainder came from road transportation, energy, chemical and food equipment, airport facilities, logistics, offshore and financings.
"In 2010 CIMC laid out a diversification plan. Four years on, we can be proud to say this strategy has been successful. We are aiming to provide our customers with integrated services that include design, manufacturing, financing and leasing across our product offerings," said president Mai Boliang.
Mr Mai said the company does not intend to relinquish its dominance in container manufacturing, reported Lloyd's List. "Last year 96 per cent of the world's containers were made in China, and we held a global market share of around 50 per cent.
"I don't think this manufacturing chain will move out of China in the next decade. Despite our diversification efforts, we will still maintain the dominance in container making."
CIMC disclosed in its annual report that in December it acquired a 70 per cent stake in Brigantine Services and Brigantine International Holdings, Maersk Line subsidiaries that operate in container repair and maintenance, for an undisclosed amount.
"We hope this is the first step toward deeper co-operation with Maersk Line, our decades-long customer," Mr Mai said.
Total sales of dry containers in 2013 stood at 1.1 million TEU, up one per cent from the year earlier.
Reefer container sales fell three per cent to 119,600 TEU and sales of special containers decreased 16 per cent year on year.
Average selling price, a figure the company declined to disclose, dropped 10 per cent in 2013.
"We now have orders [for new containers] fully booked in the first half and prices have gone up from late last year," Mr Mai said.
WORLD SHIPPING
28 March 2014 - 23:38
Top box maker CIMC's 2013 profits fall 21pc as revenues rise 6.5pc
CHINA International Marine Containers (CIMC), the Shenzhen company that makes half the world's containers, posted a year-on-year 21 per cent decline in 2013 net profits to CNY1.3 billion (US$216 million), drawn on revenues of CNY57.8 billion, up 6.5 per cent.
WORLD SHIPPING
28 March 2014 - 23:38
Top box maker CIMC's 2013 profits fall 21pc as revenues rise 6.5pc
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