Yang Ming’s operating margin falls to 4.2% Net profit attributable to the owners of the parent of Taiwan’s second-largest container shipping line, Yang Ming, fell to just TWD 3.4 billion (USD 112.0 million ) in the first quarter of 2023, representing a 95% decrease from the previous year.
Yang Ming also posted a single-digit operating margin in the quarter: revenue reached TWD 36.95 billion for the three months, while operating profit (EBIT) reached TWD 1.54 billion, yielding a margin operational of 4.2%. It is the first time that a top 10 airline has reported a single-digit margin since the third quarter of 2020, although the industry regularly published such figures before the pandemic.
Yang Ming said the market had suffered from delayed transportation and operational restrictions in the first quarter due to the Lunar New Year holiday, adjusted shipping schedules by factories, and smaller labor allocation driven by market demand. .
Volumes were up in March, although the latest figures show revenue fell again for Yang Ming in April. Taiwanese lines repeatedly reported the highest operating margins during the pandemic, but are now seeing rapidly declining profits. Yang Ming and compatriot Evergreen topped the margin rankings in each of the seven quarters leading up to Q4 2022.