Major Chinese Shipbuilder Sees Profits Nose-dive

Reuters
Wednesday, August 22, 2012

China Rongsheng profit dives as new ship orders dry up.

China Rongsheng Heavy Industries Group, the country's largest private shipbuilder, posted its sharpest fall in half-year profit - down 82 percent - on a dearth of new orders, putting further pressure on its stretched balance sheet reports Reuters.

In a stubbornly downbeat global economy, the shipping industry has suffered widespread losses, with many small and medium sized Chinese builders close to bankruptcy as bankers cool on a sector struggling with a glut of vessels ordered during the boom times.

The company said it won orders for just two new vessels with a total contract value of $55.6 million. In the first half of last year it won orders for 24 vessels worth $1.08 billion.

Source: Reuters

 

Categories: Finance Shipbuilding

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