Guangzhou’s 2005 Net Pft to Rise Over 40%

Hong Kong-listed Guangzhou Shipyard International Co. expects its 2005 net profit rose more than 40% on improved profitability in shipbuilding and a writeback of provisions. The company's net profit for the year ended December 2004 totaled $7.6 million. In a statement to the Hong Kong stock exchange, Guangzhou Shipyard attributed the expected increase in 2005 earnings to higher ship prices and cost control measures. It said it expects gross margins in the shipbuilding business to be higher in 2005 than in 2004. The company's board of directors also approved a writeback of about $3 million of provisions made for bad debt, which will be included in the 2005 consolidated profit and loss account. Guangzhou Shipyard is 43%-owned by state-owned China State Shipbuilding Corporation. (Source: Yahoo!)