DJ MARKET TALK: Cosco Off 3.5%; More Projects May Be Delayed - KE
0321 GMT [Dow Jones] Cosco (F83.SG) falls below S$0.70 for first time since November, off 3.5% at S$0.695, as news of customer seeking delay in taking delivery of 3 bulk carriers fuels concerns shipbuilder may face more of such requests in future amid tougher operating climate. "This latest delay is in line with our expectation that the challenging market environment will cause more order cancellations and/or customer requests for delivery delay," says Kim Eng Securities. Value of contracts not disclosed but Cosco says rescheduling won't impact FY09 earnings. Still, bottomline growth remains at risk if more customers follow suit, considering 10% fall in FY08 earnings partly due to several customers' requests to postpone delivery schedule due to credit crunch. Support eyed at November low of S$0.655. (FKH)
(END) Dow Jones Newswires
March 01, 2009 22:21 ET (03:21 GMT)
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