Global Ports warns on earnings as tariffs hit commercial business

(Sharecast News) - Global Ports said annual earnings would fall after trade tariffs reduced the flow of container ships through its commercial ports.
The company reported a 10% fall in third-quarter earnings to $27.2m, unadjusted for currency swings, on revenue down 2.7% to $36.9m. Earnings from the cruise business meanwhile rose 12.9% but the commercial division suffered a 29.6% fall in earnings.

Emre Sayin, Global Ports chief executive, said: "Trading since the period end at our cruise business has continued to be in line with our expectations, while trading at our commercial business has continued to be weak. As a result of the challenges facing the commercial business, we now expect the group to deliver for the full year a decline in consolidated EBITDA in percentage terms of mid-single digit against 2018."

Cargo passing through the company's ports in Akdeniz, Turkey, and Adria, Montenegro fell by two thirds in the three months to the end of September. The European Union has imposed tariffs on Chinese goods to stop alleged dumping amid an increasingly protectionist trade climate.

Global Ports said: "Throughput container volumes were once again weak in the period and this sustained weakness has continued into Q4. Longer term an agreement to end the current escalation of trade tariffs involving China and a general improvement in Chinese GDP are, we believe, the most likely catalysts for a meaningful improvement in container throughput volumes."

The company's shares, which have slumped from 396p at the start of 2019, fell 4% to 240p at 11:36 GMT.