Net profit for the first quarter dropped 25% year-on-year to S$27.83m ($22.27m) compared to S$37.09m in the corresponding period of 2011.
Revenue also declined to S$978.72m compared to S$1.01bn a year ago.
“As the group continues construction in 2012 on new ship building contracts that were secured in 2010 at low contract values due to the slumping bulk carrier shipping market then, the group expects the operating margins on new shipbuilding projects to be under even greater pressure notwithstanding improving gains in efficiency and productivity,” Cosco Corp said.
Singapore-listed Cosco Corp expects business and operating conditions for the rest of this year to remain “difficult and challenging.”
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