Evergreen Marine Corp., part of Asia’s second-biggest container shipping line, had an unexpected quarterly loss as overcapacity damped cargo rates.
Net loss was NT$1.12 billion ($37.5 million), compared with net income of NT$7.64 billion a year earlier. The number was derived from nine-month earnings the Taipei-based company announced today. The average of seven analyst estimates compiled by Bloomberg was for a profit of NT$2.68 billion.
Rates for hauling Asian-made toys, furniture and auto parts have tumbled this year because new ship capacity has outpaced demand. China Cosco Holding Co.’s container arm, Asia’s biggest, suffered a 26 percent drop in rates on transpacific routes in the third quarter and a 41 percent decline on services to Europe, based on its earnings statement.
Evergreen climbed 0.3 percent to NT$16.85 in Taipei trading today, before the announcement. The stock has fallen 39 percent this year, compared with the 15 percent decline in the benchmark Taiex stock index.
Nine-month net income was NT$267 million, compared with a profit of NT$11.7 billion a year earlier, the company said in a statement to the Taiwan stock exchange today.