Wisdom Marine earnings decline on sluggish trade

MORE WEAKNESS AHEAD::The bulk shipper expects business to pick up in the second half, but says full-year earnings may drop because of weak freight rates

By Amy Su  /  Staff reporter

Fri, Aug 09, 2013 - Page 14

Wisdom Marine Group (慧洋海運集團), one of the nation’s major bulk shippers, said its profit fell by more than 30 percent year-on-year in the first seven months of the year, reflecting the continuous sluggish sentiment in the sector.

Pre-tax profit reached NT$915.3 million (US$30.81 million) from January through last month, down 31.05 percent from a year earlier, the company said in a statement.

Pre-tax earnings per share (EPS) were NT$2.32 in the first seven months, which were 37.5 percent lower than the NT$3.71 recorded for the same period last year. The company attributed the fall to an expanded capital base after bondholders started converting their holdings into common stock during the period.

Consolidated revenue totaled NT$4.74 billion in the first seven months, down 3.78 percent from a year ago, with sales for last month alone dropping 9.57 percent from a year earlier to NT$697.21 million, company data showed.

Wisdom Marine chairman James Lan (藍俊昇) said last month that while he expects business to pick up in the second half compared with the first half, full-year earnings are likely to decline because of persistently weak freight rates.


“The company will maintain its strategy of building vessels during the current low-cost period and seeking to sign long-term contracts with partners,” Lan said at an investors’ conference.

The company currently has a fleet of 91 ships, but it will add three new ships by the end of this year.


Meanwhile, U-Ming Marine Transport Corp (裕民航運) — a member of the Far Eastern Group (遠東集團) and also a leading bulk shipper in Taiwan — yesterday said its consolidated revenue in the first seven months stood at NT$3.88 billion, down 19.63 percent from a year earlier.

Dimerco Express Group (中菲行國際物流), which offers freight-forwarding and logistics services, also reported that consolidated sales reached NT$7.93 billion in the first seven months, a decline of 9.4 percent from a year earlier.