With world trade activity dragged down by the unfolding global economic crisis, listed port operator International Container Terminal Services (ICTSI) sees a bleak 2009, with growth possible only by next year, BusinessWorld reported.
"Although the company's revenue, volume and cash flow increased in 2008 over 2007, the growth occurred in the first nine months. This trend was reversed in the fourth quarter. In this environment, past performance is no indication of future results," ICTSI chairman and president Enrique Razon said.
"The recession is hitting us hard right now as volumes are very low. We're in the midst of a crisis, there's no market, there is nothing we could do about that," he added.
ICTSI posted a 13 percent drop in net profits to US$80.7 million in 2008 from the previous year's $97.8 million.
The firm traced the weakened profit margin to a change in accounting rules and the weakening of the currencies in the countries where ICTSI's ports are located.
ICTSI has lowered its capital expenditures for 2009 to $200.1 million from the previous year's $224.8 million. The company will primarily spend on civil works and purchases of major cargo handling equipment in Manila, Brazil and Ecuador.
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