SITC first quarter profit up 7pc as sales rise 24pc to US242.9 million

HONG KONG listed SITC International Holdings Co Ltd has posted a first quarter net profit increase of seven per cent to US$25.1 million drawn from quarterly revenues of $242.9 million, up 24 per cent year on year.


First quarter container volume also increased 11.9 per cent to 347,467 TEU with 12 per cent increase in revenue per TEU to $542.1 per unit. SITC forwarding soared 126 per cent to 295,136 TEU, said the company.


But the company said it also faced higher costs, which increased faster than revenues, thus depressing profits. Cost of sales increased 26 per cent to $208 million because of higher bunker prices and charter hire rates.


A 33 per cent year-on-year increase in administrative expenses, from $8.8 million to $11.7 million spent in the first three months of year, was attributable to expenses arising from the expansion of the logistics network, opening new branch offices to support this aspect of its business.


Said SITC chairman Yang Shaopeng: "There is huge and rapidly growing demand for shipping logistics services in Asia and as our business continues to expand, we will continue to expand our intra-Asia service network and replicate our integrated services model within our network."
(Source:http://www.schednet.com)