SINGAPORE's Singamas, the world's No 2 box maker, posted a 31 per cent year-on-year first half net profit decline to US$13.3 million, drawn on revenues of $678.7 million, which increased 16.6 per cent.
"Demand for new containers remained soft and production volume was low in the first quarter of 2014, which began to pick in the second quarter," said company chairman Teo Siong Seng.
"However, average selling price was picking up at a slower pace," said Mr Teo, also managing director of Pacific International Lines (PIL), the parent of Singamas.
"Demand for new containers remained soft and production volume was low in the first quarter of 2014, which began to pick up entering in the second quarter," he said, adding that Singamas sold 24 per cent more boxes to 296,374 TEU.
But Singamas expects difficult conditions in the second half as the anti-dumping and countervailing probes in the US regarding the imports of 53-foot containers continues.
Source : HKSG.