Cosco warns that first half financial loss will be worse than last year's

Time:2012-08-01 Browse:57 Author:RISINGSUN
CHINA Cosco has issued a profit warning, saying it expects to post a first half 2012 net loss that will be more than 50 per cent higher than the CNY2.8 billion (US$439 million) loss it made in the first half of 2011.


The company attributes the poor results to a weak global economy and slower growth in China, as well as the persistence of "excessive capacity and the imbalance in supply an demand situation in the international shipping market".


Cosco`s statement to the Hong Kong stock exchange also said that "freight rates in the dry bulk shipping market remained low and the relevant costs, including fuel costs, remained at high levels".


In the first quarter of 2012 the company reported a net loss of CNY2.7 billion (US$423 million).

 
For the whole of 2011, China Cosco recorded a loss of CNY10.5 billion, with 48 per cent of its revenue coming from container shipping last year.