Singamas Container Holdings, the world's second-largest maker of shipping containers, returned to the black in the first half, posting a net profit of almost US$10.2 million, compared with a $27.4 million net loss the previous year.

Chief executive Teo Siong Seng said production of new containers virtually ceased until after the Lunar New Year in February, following a slump in demand last year, reported the South China morning Post.

"Production only returned to normal in April and May," he said.
The company produced 230,666 20-foot containers and sold 236,190 in the first half, generating revenue of $471.4 million, while logistics operations contributed $17 million. This compared with an output of 18,243 containers and a total revenue of $99.5 million in the first half of last year.

The company, which has a 25 per cent global manufacturing market share, has a full order book until September and was now "filling October capacity".

Asked about the impact on the company of a potential slowdown in global container shipments that has been forecast by some container shipping lines, Teo said there had been "some caution about placing orders in November and December".

He said the company was scouting for potential merger and acquisition targets, especially among specialist container manufacturers.

"We are talking to a couple of candidates," he said, expecting deals to be confirmed in the next few months.
(Source:www.cargonewsasia.com)