Asia/Pacific News
China COSCO Makes Profit Warning
China COSCO Holdings Company Limited (China COSCO) [1919.HK] released a profit warning Friday saying that the net profit for the six month period ended June 30, 2012 will be reduced by 50% compared to the same period in 2011.
China COSCO's announcement did not list exact figures but the net loss attributed to the Group for the first six months of 2011 was RMB2,757,578,000 ($432 million) or RMB0.27 ($0.04) per share.
Shares in the firm fell 3.54% in trading Monday to RMB 4.17 or $0.6609.
2012 interim results of the COSCO Group are attributed to the continuing weakness in the global economy, slower growth of China's economy, and excessive capacity and oversupply in the international shipping market.
Low dry bulk freight shipping rates and the relatively high cost of fuel are also listed as contributing to the 50% decline.
The company said it is still finalising the interim results and so the profit warning is only a preliminary assessment based on consolidated management accounts provided to the Board that have not been reviewed or audited.
