China's top shipbuilder forecasts profit slump

China CSSC Holding Ltd., the listed arm of China's largest shipbuilder, said Saturday that its profits will likely shrink by 95 to 100 percent year on year in 2012 as the result of a sluggish shipping industry. The Shanghai-based firm said in a statement filed to the Shanghai Stock Exchange that the slump will largely be attributable to a substantial decline in newbuilding prices amid a lingering shipping downturn. The company's net profits hit 2.52 billion yuan (400 million U.S. dollars) in 2011, while earnings per share stood at 2.12 yuan. China's shipping industry has been on the decline following a brief recovery in 2010, as the industry has been hit by a supply and demand imbalance and rising operating costs. The Shanghai International Shipping Institute, an industry research and consulting organization, said in a report issued Wednesday that the downturn is likely to continue in the first quarter of the year.