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Evergreen Marine returns to profit on strong US demand

Evergreen Marine Corp (長榮海運), the nation's biggest shipping line, returned to profit in the second quarter after Asia's booming exports of toys, clothes and other goods to the US and Europe allowed it to charge more for carrying containers.

Net income was NT$1.28 billion (US$39 million) in the three months ended June 30, compared with a loss of NT$1.16 billion a year earlier.

The figure was derived by subtracting first-quarter profit from six-month results the Taipei-based firm released yesterday.

Evergreen Marine follows Neptune Orient Lines Ltd, China Shipping Container Lines Co and other shipping lines in posting improved earnings as US and European demand for Asian goods let them raise fees. Higher fuel costs and excess capacity crimped profits a year earlier.

"The worst is over for Evergreen Marine," Charles Ma (馬嘉禾), a Taipei-based analyst at SinoPac Securities Corp (永豐金證券), said before the earnings announcement.

He has a "buy" rating on the stock.

Evergreen Marine's second-quarter sales fell 21 percent from a year earlier to NT$7.21 billion, based on monthly stock exchange filings. Revenue from subsidiaries is counted separately.

Evergreen Marine spokeswoman Daphne Tsai confirmed the derived profit calculation.

First-half profit surged about 28-fold to NT$1.63 billion, the company said in a filing to the Taiwan Stock Exchange.

Evergreen Marine shares closed unchanged at NT$21.40 in Taipei before the announcement. They have risen 14 percent this year, compared with a 15 percent gain for the TAIEX stock index.
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