COSCO Expects Business in 2012 to be “Difficult and Challenging”, Reports Lower Profits

COSCO 5000 pctc
Image courtesy COSCO

SINGAPORE (Dow Jones)–Cosco Corp. (Singapore) Ltd. (F83.SG) said Tuesday its first-quarter net profit fell 25% from a year earlier, mainly due to lower profit contributions from its dry bulk shipping and shipyard operations.

Cosco said in a statement that net profit for the three months ended March 31 fell to S$27.8 million from S$37.1 million a year earlier.

Group revenue fell 3.2% to S$978.7 million from S$1.01 billion a year earlier, with revenue from its core shipyard operations falling 2.5% to S$965.9 million, due mainly to lower contributions from ship repair and ship building projects, the company said in the statement.

The company’s order book stood at US$5.8 billion at the end of March, with deliveries up to 2014.

Cosco said it expects business and operating conditions for the rest of 2012 to remain “difficult and challenging” due to the uncertain global economy.

-By Matthew Allen, Dow Jones Newswires