Vapores Drops After Forecasting Lower Rates, Profit

Oct. 29 (Bloomberg) -- Cia. Sudamericana de Vapores SA, Latin America’s largest container shipping company, fell the most in more than two months in Santiago trading after saying rates and profit margins probably will decline this quarter.

Vapores dropped 2.1 percent to 652.14 pesos, the steepest decline since Aug. 11 and the worst performance among stocks in Chile’s benchmark equity index, the Ipsa.

The Valparaiso-based company erased an earlier gain after saying in a statement accompanying quarterly earnings that demand has been “less vigorous” since the third quarter. Vapores reported record quarterly profit of $149 million compared with a loss of $147 million a year earlier.

“Future conditions don’t seem as auspicious as the just-ended quarter,” it wrote in a statement posted on the Chilean securities regulator’s website. “Expectations for the fourth-quarter are that global volumes won’t keep growing at the same pace and even show some declines from previous months.”

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