PORT operator International Container Terminal Services, Inc. (ICTSI) expects improved business this year, thanks to a better business environment and growth in the global economy.
“We expect better figures this year compared to last year when everything was a disaster,” said ICTSI chair Enrique Razon at the sidelines of the company’s annual stockholders meeting last week.
Despite a rosier outlook, the company will stick to a conservative stance where its investment and expansion plans are concerned. “I cannot say with any degree of confidence that the global economy will be better in 2011,” Razon said.
“The road to recovery from the recession is sluggish and uneven at best, but we are making the best out of this situation,” Razon explained. “We shall be on the lookout for prospects and make decisions but as always we will be prudent.”
For now, ICTSI is looking for other port projects to add to its growing portfolio but has no plans to tap the credit market to finance its operations. It recently submitted an intent to manage the Callao Port in Peru.
In 2009, ICTSI reported a 15% drop in net income to $54.9 million over the year before.
The port operator attributed the decline to less volume due to tepid global trade, increased interest expense because of higher debt levels, and higher depreciation expense associated with continued investment in its container-handling capacities.
Consolidated revenues dropped 9% to $421.7 million in 2009 from $463.1 million in the previous year.
