MISC Berhad saw revenues tumble in the first quarter following its decision to exit the container business.
The Malaysian shipping group saw revenue contract 17.8 percent year-over-year to RM2,404 million ($780 million) in the quarter ended March 31 as its liner business saw a 93 percent collapse in liftings.
On the back of lower revenue and higher losses by its liner business, the group's operating profit of $3.96 million for the quarter was 93.2% lower than a year earlier.
“The revenue decrease was largely due to reduction in Liner business revenue from lower volume carried and lower freight rates,” said MISC, which confirmed it would complete its exit from container business by mid-2012 to concentrate on its bulk and energy operations.
MISC announced its decision to withdraw from the liner trades last year after managers concluded the group could not compete with the economies of scale generated by larger rivals.
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