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Evergreen Marine expects to swing to profit in 2010

2010/06/17 17:51:50

Taipei, June 17 (CNA) Evergreen Marine Corp. said Thursday itexpects to swing to a profit in 2010 as the global economy is on theroad to recovery.

Evergreen Chairman Hsieh Chi-chien told reporters that the euro'sdecline against the U.S. dollar has made European exporters morecompetitive but has hurt demand from Europe.

But the lower imports in Europe have been offset by demand forcheaper European products and for cargo deliveries on Europeanroutes, he said.

Hsieh said he is very upbeat about heavier shipping on Europeanroutes, therefore, his company has shifted much of its deliverycapacity to those routes.

Meanwhile, buyers in the United States have been building upinventory since the fourth quarter of last year and demand from theU.S. has been on the rise, which in turn has spurred demand for cargodelivery, he said.The strong shipping demand on U.S. routes isexpected to continue into the end of October as the peak periodfor the high tech sector will start in July, he said.

Hsieh said his company is expected to post earnings in the firsthalf of this year and the outlook for the second half is even better.

Last year, Evergreen Marine posted NT$9.86 billion (NT$306million) in net losses, as the world's external trade was seriouslyhurt by the global financial meltdown.

In the first quarter of this year, the company recorded NT$87million in net loss, which signaled an upward trend.

(By Chao Hsiao-hui and Frances Huang)
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