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CSBC flaunts orders totalling US$2.68 billion

CSBC flaunts orders totalling US$2.68 billion

The China Shipbuilding Corp. (CSBC) said in a report it issued yesterday that the company currently has orders totalling more than NT$90 billion (US$2.68 billion) to build vessels.

The written report was presented by the CSBC to the Science and Technology Committee of the Legislative Yuan which is set to review the CSBC's budget for next year.

The brisk business will help the company continue its efforts to improve its financial structure and promote its privatization, the CSBC report said.

The CSBC said that it currently has orders worth NT$78.32 billion to build 51 commercial ships and orders worth NT$12.61 billion to build 30 military vessels.

It has therefore listed its post-tax profits at NT$285 million for 2006, up 17.28 percent from the figure for 2005, mainly because of increased business.

Following on the heels of the hot demand seen in 2003 and 2004, orders for new ships reached a peak in May 2005, with orders and prices for new vessels declining in the latter half of the year, the CSBC said.

Looking ahead, the company said that most market research reports have not been optimistic about the period to the end of the first quarter of 2006, the company said.

The report said that because of steep competition and a slump in vessel prices, the company suffered heavy losses in 2000 and then launched a "rejuvenation program" in 2001, under which one first-grade department and 50 second-grade units were phased out and 2,280 staff members were axed, while those who stayed on took a 35-percent pay cut.

Updated : 2021-06-19 12:46 GMT+08:00