Ungarnished Recovery

Want to know how our “recovery” is really coming along? Schednet lays it on the line. Here’s yesterday’s ungarnished truth.

1. “Schednet – (3/31/2014) – From Singapore’s global terminal operator PSA International.

“‘PSA has performed creditably amid a difficult year in 2013 which saw unsettling volatility, much uncertainty and uneven growth across the global economic landscape,’ said PSA chairman Fock Siew Wah …

“‘Looking ahead, I foresee volatility, uncertainty and unevenness of growth that plagued 2013 will stubbornly remain as common features doe 2014. We have to remain agile, tread with caution to seize opportunities and overcome challenges that come our way,’ said Mr. Fock.

“Said CEO Tan Chong Meng: ‘The container shipping and port industry has been rocked by game-changing developments in recent years, which precipitated the shake-up we have seen in 2013.'”-

2. The Schednet reports today (April 1st) include the following:

First this headline: “Evergreen suffers US $ 49 million loss in 2013, imploding rates blamed”

“TAIWAN’s Evergreen Marine posted a net loss for 2013 of TW $ 1.5 billion (US $ 49 million) drawn on revenues of TW $ 139.2 billion, down one percent … This wiped out the previous year’s profit of TW $ 312.5 million.” –

And then this headline: “Yang Ming widens loss to US $ 95 million loss, blames falling rates”

“TAIWAN’s Yang Ming Marine Transport posted a loss of TW $ 2.9 billion (US $ 95.2 million) for 2013, drawn on revenues of TW $ 18.9 billion, down 10 percent. This widened the previous year’s loss of TW $ 6 billion, from a loss of TW $ 1.9 billion in 2012, according to a filing on the Taiwan Stock Exchange. The deeper loss came despite asset sales and other one-time gains that generated TW $ 4.5 billion last year. In November the company sold a 12.5 per cent stake worth US $ 56 million in Yang Ming’s new Kao Ming container terminal. The company said it would book gains of US $ 29 million from the sale.

“That followed the sale in December 2012 of 40 per cent of the shares in KMCT for a total of US $ 180 million, and in a sale and leaseback arrangement in November 2013, Yang Ming sold an unspecified number of dry containers for US $ 47 million and said it would book a gain of US $ 32.4 million from the transaction.” –

[Sell your assets. That’s the way to hide an actual $ 363.6 million loss from your stockholders and the accommodating news media. Do the math.]