START-UP costs of new operations in Asia, China and the United States pushed freight forwarder BALtrans Holdings' profits down 13.03 per cent to $37.52 million in the year ended July.
Chairman and chief executive Anthony Lau Siu-wing said: 'The freight forwarding industry is suffering from excess capacity which led to a fall in prices and narrower profit margins.' The results included an exceptional loss of $3.46 million, provisions for bad debts for a customer in the United States.
Turnover rose 27.83 per cent to $809.12 million from $632.97 million.
Earnings per share fell to 18.2 cents from 21.3 cents.
A final dividend of six cents a share, against 6.2 cents previously, will be paid.
Mr Lau said strong economic activity in the Asia-Pacific region and the expansion of the group's network were the main factors behind the improved performance.
The higher turnover was due to increased air freight business between Hong Kong and North America following the acquisition of an 80 per cent stake in Supreme Air Freight.