Hutchison tops $1 billion in port profits

Hutchison tops $1 billion in port profits    Hutchison Port Holdings made HK$8.9 billion ($1.1 billion) in earnings before interest and tax in 2004, 17 percent more than in 2003, its parent company Hutchison Whampoa reported Thursday.
   The HK$8.9 billion ($1.1 billion) in earnings before interest and tax for 2004 translates into an operating profit margin of 32 percent of revenues.
   The highly profitable Hong Kong-based port operator increased its worldwide port volume 15 percent to 47.8 million TEUs in 2004, when it remained the world’s largest container terminal group.
   Hutchison Whampoa does not disclose net profit of its ports business, but it said revenue from the ports division grew 17 percent in 2004 to HK$27 billion ($3.5 billion) from HK$23.1 billion in 2003.
   With operations spread across Asia, Europe, Africa and the Americas (excluding the United States and Canada), Hutchison reported throughput and profit growth in all regions.
   The group’s Hongkong International Terminals subsidiary reported growth of 18 percent in throughput and 4 percent in operating profit for 2004. Its activities in Yantian, South China, saw volumes rise 19 percent and operating profit go up 20 percent, following the addition of four berths at the terminal.
   “Operations in the Americas and the Caribbean reported combined throughput 6 percent ahead of last year and earnings before interest and tax increased 17 percent due to strong throughput growth in Buenos Aires in Argentina, partially offset by the effect of hurricanes on the port of Freeport in the Bahamas,” Hutchison Whampoa said.
   Hutchison Port Holdings continues to expand its terminal activities around the world. Recent contracts include additional operations in Shanghai in China, Laem Chabang in Thailand, Gdynia in Poland, and Alexandria and El Dekheila in Egypt. Hutchison Port Holdings is also studying a port and rail venture on the Pacific Coast of Mexico in cooperation with Union Pacific.