Fri, Oct 29, 2010 - Page 12 News List

Revenues, profits reach new highs for Yang Ming

AS EXPECTED:The results were in line with a Credit Suisse forecast and rode on higher transpacific freight rates. Strong demand is also expected this quarter

By Kevin Chen  /  Staff reporter

Yang Ming Marine Transport Corp (陽明海運), the nation’s second--biggest container shipping line, yesterday saw both profit and revenue reach record highs in the third quarter on rising freight rates, higher transportation demand and effective cost-control measures.

Net income reached NT$7.66 billion (US$248.5 million) in the period from July to last month period, compared with a loss of NT$3.77 billion a year earlier. That was higher than a profit of NT$2.69 billion it made in the previous three months, the company’s data showed.

Yang Ming released its first nine-month profit of NT$10.38 billion at an investor conference yesterday. The Taipei-based company reported a net loss of NT$10.71 -billion in the same period last year.

Earnings per share reached NT$2.99 in the quarter and NT$4.05 in the first three quarters, also record levels for the company, the data showed.

Revenue in the quarter rose 82.95 percent to a record NT$34.37 billion from NT$18.78 billion a year ago and was up 29.4 percent from NT$26.55 billion in the second quarter.

In the first nine months, revenue totaled NT$82.75 billion, up 53.91 percent from NT$53.77 billion last year, Yang Ming said.

The company’s quarterly results were in line with Credit Suisse analyst Sam Lee’s forecast. The Hong Kong-based analyst said in a note ahead of the earnings result that higher transpacific freight rates starting from May would boost Yang Ming’s revenue and profit in the third quarter.

Yang Ming chairman Frank Lu (盧峰海) told investors yesterday that he expected the company to remain profitable in the current quarter — a traditionally slow season — on steady shipping demand.

ADDITIONAL REPORTING BY WANG YI-HUNG

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