Swire Pacific full-year earnings slump almost 50pc
Hong Kong conglomerate Swire Pacific said net profit fell 46 per cent to HK$17.5 billion last year, blaming a sharply reduced contribution from Cathay Pacific Airways.
“World economic conditions were subject to considerable uncertainties last year,” Swire Pacific chairman Christopher Pratt said in a statement. “The airline industry was significantly affected by this.”
On Wednesday, Cathay Pacific said net full-year profit fell 83 per cent reported net profit of HK$916 million. Swire Pacific is a substantial shareholder in Cathay Pacific.
Apart from a reduced contribution from Cathay Pacific, Pratt said the lower profit also reflected lower profits from its beverages and its trading and industrial divisions. But its property and marine services units and Hong Kong Aircraft Engineering lifted profits.
While global uncertainty had less impact within Hong Kong, government measures to curb property prices reduced demand for luxury residential properties”, Pratt said.
He said China’s economic growth had also slowed, particularly in coastal provinces, affecting consumer confidence and spending.
“The high price of oil adversely affected our airlines, but also resulted in increased exploration and production by oil companies, which benefited our marine services division,” he said.
