Pan-United Corp says net attributable profit (PATMI) shrunk 48% y-o-y to $5.14 million in the first quarter, due to a drop in sales volume and softer selling prices of basic building materials. Revenue fell 23% to $98.9 million in the same period.

The Basic Building Materials (BBM) division was affected by lower sales volume and margin contraction in the quarter. Lower sales volume arose mainly from an estimated 11-12% drop y-o-y in cement and RMC (ready-mixed concrete) demand.

The Shipping division achieved higher revenue y-o-y but PATMI was adversely affected by higher bunker costs and increase in vessel overheads.

Changshu Xinghua Port saw an improvement in the cargo throughput, especially for non-steel cargo, particularly logs. The higher revenue, coupled with lower interest expenses, resulted in an increase of profit contribution to the Group PATMI.
Prudent efforts to manage costs, particularly facilities and manpower, helped to lower overheads. Tax levied was proportionally lower because of lower taxable profit generated.

Pan-United says the BBM division expects sales volume of ready-mixed concrete to increase in the second half year of 2010 as some of our contracts on hand, such as those relating to the Marina Coastal Expressway, are expected to move into construction phase.

The Shipping division will continue to widen its marketing efforts to seek new cargoes and shippers.

The Port division expects its cargo throughput to remain firm for the remaining year.