02 February 2009

Vapores Extends Decline After Warning of More Losses

By James Attwood and Nathan Gill
Feb. 2 (Bloomberg) -- Cia. Sudamericana de Vapores SA fell to the lowest in six weeks on concern that losses will worsen as the global financial crisis saps shipping demand.

Latin America’s biggest container ship company slumped 2.1 percent to 411 pesos in Santiago trading, the lowest price since Dec. 22. The drop extended a five-day decline to 11 percent.

Vapores lost $38.6 million in 2008 and forecast “important” losses this year as slowing demand coincides with increased supply of vessels, according to a Jan. 30 statement. The Valparaiso, Chile-based company plans to cut services between Asia and northern Europe this quarter.
   
“The company was explicit with shareholders at the meeting last Friday that this would be a very bad year” and that cash flow is “very vulnerable,” Patricia Pellegrini, an analyst at Larrain Vial Corredores de Bolsa, said today by phone from Santiago.