New | Singamas Container says 2014 profit down, but looks for rosier 2015

Singamas Container reported 2014 net profit which is lower than the previous year, but is expecting a better 2015 bolstered by pent-up demand from shipping lines and the firm’s investment in a gateway province between China and Southeast Asia.

Singamas, the world’s second-largest container manufacturer, saw net profit fall 21 per cent to US$28 million (HK$217miilion), falling short of an estimated US$36.5 million in a Bloomberg poll of three analysts.

Revenue jumped 20 per cent to US$1.5 billion, but this failed to translate into a higher bottom-line due to the lower selling price of the standard 20-foot dry freight containers, the firm’s main product used to carry industrial and consumer goods such as apparel, rubber and toys.

The average selling price decreased 5 per cent to US$2,086, which Singamas said reflected the declining price of corten steel, the main ingredient.

“There are several positive developments that suggest the new financial year will present greater opportunities for the container industry,” Singamas said in a statement to the Hong Kong stock exchange on Monday.

“The replacement cycle of old containers will gather pace as the performance of shipping companies stabilise. Yet another potential stimulus is the decline in the price of petroleum during 2014, which in turn has freed up capital for shipping companies to acquire more containers,” Singamas said.