Singamas Container expects 'significant decline' in 2013 profit

“The significant decline in profit is primarily attributable to the decline in the group's turnover due to the soft container demand and the decrease in average selling price,” Singamas said.

The box manufacturer had registered a net profit of $60.35m in the 2012 financial year. Singamas did not provide a forecast for the potential loss.

Hong Kong-listed Singamas said the lower growth in global trade volume and the continuous underperformance of the shipping market affected the performance of the company's manufacturing business.

“This market downturn is expected to continue until the second quarter of 2014,” it said.

“Nevertheless, the group's financial situation is sound with its gearing ratio at a reasonable level despite the anticipated decline in profit. The group is well poised to capture opportunity when the market picks up.”