Net profit plummets by half at Shanghai airports

Feb. 28th -- Shanghai International Airport released its annual report for 2008. The airport company posted annual sales of 3.351 billion yuan, with operating profits of 1.07 billion yuan and net profits of 860 million yuan. These figures represent a rise of 7 percent and a decline of 47 percent and 49 percent, respectively, from 2007.
Dividend per share stands at 0.05 yuan (including tax). The annual report said that the cut in landing and take-off fees in beginning March 1st, 2008 has caused Shanghai International Airport’s profit to fall by as much as 10 percent. Appreciation of the yuan has also reduced the company’s revenues by 27 million. But the company has improved its credit strategies in the third quarter to take advantage of rate differences, thereby reaping some savings on borrowing costs. Sources on the company’s board said the tremendous growth in civil aviation seen in 2008 would slow down and expected things to be tough in 2009.