Cosco Pacific Profit Falls on Smaller Gain From Container MakerJasmine Wang
Cosco Pacific Ltd., the container-terminal arm of China’s largest shipping group, posted a 12 percent drop in profit as a smaller gain from its stake in a container maker outweighed cargo volume growth.
Net income in 2012 fell to $342 million from $389 million a year earlier, the Hong Kong-based company said in a stock exchange filing today. Sales rose 23 percent to $735.5 million.
Cosco Pacific’s terminals, which are predominantly in China, handled 9.8 percent more containers last year as an improving world economy spurred demand for Chinese-made toys and clothes. The company, whose largest shareholder is China Cosco Holdings Co., also has facilities in countries including Greece and Singapore.
Profit contribution from its 22 percent stake in China International Marine Containers Group Co., the world’s largest container-maker, fell 48 percent to $61.9 million, Cosco Pacific said. China International Marine last week reported a 47 percent slump in profit to 1.93 billion yuan. ($311 million).
Shares of Cosco Pacific fell 0.4 percent to HK$11.12 as of 1:10 p.m. in Hong Kong. The company, part of the Hang Seng Index, has lost 5.4 percent in the past year, compared with the index’s 7.1 percent gain.
Cosco Pacific said excluding the share of profit from China International Marine and other non-recurring items, its profit rose 15 percent last year.
Cosco Pacific proposed to pay a final dividend of 18.3 HK cents, up from 17.4 HK cents a year earlier.