China International Marine Containers, the world's largest maker of shipping containers, posted a 43 percent rise in fourth-quarter earnings on Friday with a positive outlook for 2004.
CIMC, an arm of ports-to-roads conglomerate China Merchants Holdings, posted a net profit of 111.96 million yuan ($13.52 million) versus 78.24 million yuan in 2002, according to Reuters' calculation based on figures reported previously.
Its staple container business saw increases in sales and prices along with a strong rebound in the shipping sector, the company said in a statement published in the Securities Times.
"Global demand for containers saw record-high growth and prices continued to rise," it said.
CIMC, which with rival Singamas Container Holdings dominates the world-wide manufacture of containers, expected prices to rise as demand improves in 2004, buoyed by a recovery in the global economy.
Analyst have said CIMC, in an industry with relatively low margins, has the advantage of low production costs compared with foreign rivals due to cheap labour in China.
The company saw full-year net profit jump 46.86 percent to 682.69 million yuan in 2003. Turnover leapt 52 percent to 13.8 billion yuan.
It sold a record high of 1.17 million 20-ft equivalent units (TEUs) in 2003, up 56 percent year on year.
The company posted a turnaround in 2003, after recording a 14 percent slide in earnings a year earlier as it suffered from soaring steel prices and slowing demand for its products due to the weak global economy.
CIMC, with a 40 percent global market share, has secured a $1.5 billion credit line from the Import and Export Bank of China early this year, which would help it expand its footprint.
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