Wan Hai Lines Ltd (萬海航運) expects to remain in the black this quarter and is upbeat about next year, as the global economy might rebound in the second quarter, Wan Hai Lines chairman Chen Po-ting (陳柏廷) said yesterday.
Chen’s comments came as the shipping company reported net profit for last quarter plunged 25.8 percent quarter-on-quarter and 37 percent year-on-year to NT$22.35 billion (US$718.3 million).
Revenue retreated by a double-digit rate year-on-year, company data showed.
Photo: Wang Yi-hung, Taipei Times
“The global economy is not as bad as some people thought and it is better than it was during the global financial crisis,” Chen said on the sidelines of an event in Taipei.
While three factors — rapid inflation, pessimism among consumers and geopolitical tensions — have affected the global economy considerably, “different sectors have mixed performances,” he said.
“The consumer goods sector, including smart devices, has fared poorly, but the essential products sector is showing resilience,” he said, adding that the global economy is expected to rebound in the second quarter next year.
Wan Hai Lines president Tommy Hsieh (謝福隆) said that the company would remain profitable this quarter despite an annual contraction of 38 percent in revenue last month due to falling freight rates and declining demand.
The company expects stable revenue growth, as half of its contracts with clients in the US market were signed on a long-term basis and are protected by fixed freight rates, Hsieh said.
Wan Hai Lines does not expect its bottom line to be in the red next year, he said, without offering an exact estimate.
Asked about the company’s year-end bonus policy, Chen said it is too early to say, but it would try its best to give its employees an appropriate distribution of bonuses.
Wan Hai Lines posted net profit of NT$93.11 billion in the first three quarters, up 34 percent year-on-year, or earnings per share of NT$33.18.
The company next year would retire two to four aging vessels, while it plans to take delivery of 24 new vessels with a combined capacity of 173,558 twenty-foot equivalent units, the company said.
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