Weak global trade hits ICTSI; 9-month income down 29% Riza T. Olchondra Philippine Daily Inquirer
November 05, 2009
MANILA, Philippines--International Container Terminal Services Inc. (ICTSI) saw its net income fall in the first nine months of the year as cargo volumes declined due to weak global trade.
In a statement, ICTSI said that earnings declined by 29 percent to $37.2 million from $52.4 million for the nine months ending Sept. 30, 2009.
The company attributed the declines to lower container volume brought about by the decline in international trade, higher interest expense due to higher debt level, and the depreciation of currencies in the countries where ICTSI’s ports are located (Philippine peso, Brazilian reais, Malagasy ariary, Euro) relative to the US dollar in the third quarter of the previous year.
Revenue from port operations dropped 15 percent to $299.3 million from $352.3 million.
Earnings before interest, taxes, depreciation and amortization (Ebitda) also decreased 17 percent, from $154.9 million to $129.1 million.
For the third quarter alone, ICTSI reported a 5-percent drop in net income and a 12-percent decline in revenue.
Net income was $14 million from the $14.7 million last year, according to the company’s consolidated unaudited financial results for the quarter ending Sept. 30, 2009.
Revenue from port operations was at $110.5 million from the $125.1 million reported in the same period last year.
Ebitda stood at $49.2 million, down 12 percent from the $55.8 million generated in the third quarter of 2008.
ICTSI chair and president Enrique K. Razon Jr. said in a statement that “global economic conditions continue to be more challenging than in recent years.”
“Third quarter throughput volumes were stronger than the first two quarters, and the benefits of our cost containment efforts also contributed to ICTSI’s improving financial results,” he added.
For the nine months ended Sept. 30, ICTSI handled 2,533,951 TEUs (twenty foot equivalent units) compared to 2,776,973 TEUs in 2008, representing a decline of 9 percent.
Volume in the third quarter was 8 percent lower at 943,805 TEUs compared to the 1,021,499 TEUs in the same period in 2008.
