CIMC diversifies to beat container slump
Although China International Marine Containers (Group) Co Ltd (CIMC), the world's largest container producer, says dry cargo containers are still its core business, the company has been accelerating efforts to develop other businesses such as manufacturing of road transportation vehicles and energy-related equipment to help it navigate the financial crisis.
On Jan 23, CIMC announced that its container business, which contributed about 70 percent of the company's sales revenue in 2007, stopped operation in the fourth quarter of 2008, and demand for road transportation vehicles, the company's second-largest business, also fell sharply.
Given the bleak business situation, the company also predicted it will reap a profit of merely 1.5 billion yuan in 2008, down from 3.16 billion yuan in 2007. In the first three quarters, the company posted a profit of 1.7 billion yuan, followed by a loss of 200 million yuan in the fourth quarter.
