Wed, Aug 22, 2012 - Page 14 News List

Dimerco Express’ Q2 profits fall on expansion plans

By Amy Su  /  Staff reporter

Dimerco Express Corp (中菲行國際物流), which offers freight-forwarding and logistics services, yesterday reported lower profit for the second quarter from a year earlier, on the impact of the company’s investments, which boosted operating costs.

The Taipei-based company posted NT$57.86 million (US$1.93 million), or NT$0.45 per share, in net profit during the April-to-June period, compared with the net profit of NT$89.59 million, or NT$0.68 per share, recorded during the same period last year.

“Despite the global economic uncertainties, the company continued its expansion plans in the first half of this year,” company spokesman Jack Ruan (阮耀樟) said by telephone.

The expense on the expansion plan increased the company’s operating costs in the second quarter, further slowed the net profit during the period, Ruan added.

However, on a quarterly basis, the company’s net profit in the second quarter was higher than the net profit of NT$27.05 million, or NT$0.21 per share, posted during January-to-March period, Dimerco’s data showed.

The Taiwanese firm has been aiming to expand its scope since the first quarter through mergers and acquisitions in the Greater China region and Asian emerging markets.

It has also been looking for joint ventures and forming strategic partnerships with related companies in the US market.

Last week, Dimerco said it has launched a customs brokerage service in Los Angeles — the company’s second branch in US.

Ruan said the company would continue to expand in the US over the near future.

The company posted NT$84.91 million, or NT$0.66 per share, in net profit for the first six months, down from the net profit of NT$136.12 million, or NT$1.03 per share, recorded during the same period last year, statistics showed.

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