Wednesday, October 31, 2012
China Shipping profits rise, COSCO works to reverse losses
China Shipping Container Lines rose 9 percent in Hong Kong trading, the highest it has been since early June. China Cosco shares rose 4.9 percent.
CSCL reported a net income of $159 million at the end of the third quarter, compared with a loss of $152 million the same time last year.
"We remain positive on CSCL's future earning thanks to the industry's self-discipline," wrote Lawrence Li, an analyst at UOB Kay Hian Holdings, in a report. "Cost pressure eased on lower bunker fuel prices."
Li said CSCL has increased freight rates. The Asia-Europe rate was raised by 85 percent year on year, and the Transpacific rate rose 58 percent since 2011.
China Cosco Holdings Co. had a third-quarter loss of $245 million compared with $332 million in third quarter 2011. COSCO reported it might have a net loss this year, due to "imbalances between supply and demand, low dry bulk freight rates."
For more of the Bloomberg story: businessweek.com
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