Shipping company Sinotrans said its first-half net profit will be hit by the weak performance of its Shanghai-listed unit Sinotrans Air Transportation Development Company. This is in common with most air freight operations worldwide.A severe contraction in the import and export volumes in the air freight market in the six months ending June 30 has substantially affected the air express and air carrier operations.
CargoNewsAsia said Sinotrans had reported this contraction is likely to have an adverse effect on Sinotran’s financial results and net profit for the first half giving, as it were, a distant early warning to shareholders.
Sinotrans reported a net profit of US$100.2 million in the year-earlier period.