DP World first-half profit drops 34 per cent as container volumes drop

Dubai: DP World Ltd., the Dubai-controlled company managing ports from Europe to Asia, said first-half profit fell 34 per cent as container volumes were hurt by slowing trade amid the global economic crisis.

Net income fell to $175.3 million, or 1.06 cents a share, from $264.7 million, or 1.59 cents, a year earlier, the ports company said on Thursday in a statement to Nasdaq Dubai. Profit was above the $132 million median forecast of three analysts surveyed by Bloomberg News. Revenue declined 13 per cent to $1.38 billion.

The credit crunch has combined with the worst economic slump since the 1930s to reduce seaborne transportation of oil, coal and household goods.

Container volumes at the ports DP World consolidates for accounting purpose fell to 12.3 million twenty-foot equivalent container units in the first half from 13.6 million TEUs, it said.

"Looking ahead, the unpredictable trends in global trade we have seen in the first half of the year continue into the second half of the year," Chief Executive Officer Mohammad Sharaf said in the statement. "As we move through the second half, the incremental benefit of cost savings is expected to be offset by a weaker outlook for non-container revenue."

DP World, which operates 49 terminals in 27 countries from the UK to China, began operations about 35 years ago with one port. In 2006 bought Peninsular and Oriental Steam Navigation Co. for $6.8 billion.