China port operator Cosco Pacific posted a steady rise in port-handling volumes in the first quarter, a signal of continued recovery in international trade despite concerns about China's slower economic growth.
Still, the blue-chip port operator reported a first-quarter profit of $64.35 million, down 2.6 percent from a year earlier, according to a statement, reported Dow Jones Newswires.
The slight earnings decline was mainly because of a lower profit contribution from container maker China International Marine Containers, also known as CIMC.
Cosco Pacific sold its 21.8 percent stake in CIMC back to its state-controlled parent for US$1.22 billion in June of last year. The company booked no profit from the investment in the first quarter of this year, compared with a $5.7 million contribution a year earlier.
Excluding the discontinued investment, Cosco Pacific posted a 6.6 percent rise in first-quarter profit thanks to higher port-handling volumes. The company's revenue rose 11 percent to $212.48 million in the first quarter as port-handling volumes rose 9.2 percent to 15.45 million TEUs during the same period.
The CIMC sale was part of an effort by Cosco Pacific's parent, China Ocean Shipping (Group) Co, and China Cosco Holdings, which owns a 43 percent stake in the company, to return Cosco Pacific to profitability after two straight years of losses. It also allowed Cosco Pacific to focus on its core port operations and container leasing business.
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