Fri, May 12, 2017 - Page 12 News List

Yang Ming Marine operating losses shrank last quarter

By Ted Chen  /  Staff reporter

Yang Ming Marine Transport Corp (陽明海運) yesterday said that its operating losses last quarter narrowed significantly as its cost-cutting measures began to take hold.

The company reported a net loss of NT$901 million (US$29.8 million) during the January-to-March period, representing a 75.3 percent improvement compared with a year ago. Net loss per share was NT$0.53.

SALES INCREASE

Consolidated sales during the period rose 11.6 percent annually to NT$30.25 billion, while the company’s shipping volume rose 14 percent annually to 1.13 million twenty-foot-equivalent units, the company said.

Cost control measures, such as abolishing loss-incurring shipping routes, and revamping management and organization of its agency business, led to a NT$2.38 billion improvement in operating efficiency last quarter compared with the previous year, Yang Ming Marine chairman Bronson Hsieh (謝志堅) said.

The troubled company’s high-ranking managers last year also agreed to take a pay cut of 30 to 50 percent.

RECOVERY

The company said prospects look good as the global container shipping industry recovers from a downturn.

The gap between supply and demand is narrowing, with demand anticipated to rise 2.9 percent this year, while capacity expands by 3.1 percent, the company said, citing a report by maritime consultant Alphaliner.

In addition, a rally in the Shanghai Containerized Freight Index shows that the global shipping market is gradually rebounding from a trough, it added.

Yang Ming Marine shares rose 3.08 percent to close at NT$11.70 in Taipei trading yesterday.

The stock had closed at NT$6.15 on April 19, the final session before trading was halted until Thursday last week, as the company carried out a capital reduction plan to offset cumulative losses.

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