Despite growing fears of an economic slowdown in Asia, the week has started off well for family businesses ICTSI and Tat Hong, whose profits have significantly jumped. However, Li & Fung has not been as lucky as its operating profit fell and revenues increased only marginally.
International Container Terminal Services, a port operator and developer, saw half-yearly revenues rise to $345 million (€279.4 million), up 8% from $319.1 million last year. The Philippines company, run by second-generation family member Enrique Razon Jr, reported a net income of $70.3 million, an increase of 17% over the same period in 2011.
In a statement on 13 August, the company credited the profit growth to an increase in volume of trade throughout its global operations, as well as “lower financing charges”.
Fellow family-controlled Tat Hong also reported on 13 August a fiscal first-quarter turnover of S$215.3 million (€140.09 million), up 36% from S$158.4 million in 2011. Net profit at Asia-Pacific’s largest crane company – based on aggregate tonne-metres – jumped 204% to S$16.65 million in the three months to June 30, from S$5.48 million in the same period last year. The Singapore-based group is controlled by the Ng family.
Meanwhile, August’s reputation in Asia as the “hungry ghost month”, when the continent’s businesses traditionally lay low due to superstition, seemed to have caught up with Hong Kong’s Li & Fung, which said on 9 August that its operating profit for the first six months of 2012 dropped 22% to $221 million.
Half-yearly revenues, however, increased by 4% to $9.13 billion, from $8.8 billion in the same period last year.
Run by brothers William and Victor Fung, the trading business said it aims to reach its $1.5 billion operating profit target by 2013. “There is no doubt that more acquisition deals are available at attractive prices at a time of global economic uncertainty,” said William, chairman of the group.