Profits hit by economic wave

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Economic uncertainties have made scores of firms suffer losses. Profits coming from diverse sources other than companies’ conventional business lines have helped a number of firms escape the loss-making status.

For some companies such profits came from asset liquidation. For instance, at the Vietnam Ocean Shipping Joint Stock Company (VOS), in the second quarter of 2011 the company posted over VND1 billion ($48,000) in profits where it incurred losses of VND20.8 billion ($1 million) from conventional businesses. The VND21.8 billion ($1.05 million) profit came from selling one of its ships in June.

Like VOS, the Vietnam Sea Transport and Chartering Joint Stock Company (VST), also faced heavy losses of nearly VND42 billion ($2.02 million) from traditional businesses. However, the company still  enjoyed profits in the first six months thanks to liquidating its Phuong Dong 1 ship for over VND58 billion ($2.8 million).

For the Transport and Chartering Corporation (VFR), the firm suffered a huge loss of VND41.4 billion ($2 million) from business while reaping VND160 billion ($7.7 million) in profits from other sources which were the incomes from transfer of a Ho Chi Minh City-based building.

For rubber firms like Thong Nhat Rubber Joint Stock Company (TNC) and Hoa Binh Rubber Joint Stock Company (HRC) the profits came from liquidating their rubber tree gardens. The two firms posted profits of VND8.2 billion ($396,000) and VND27 billion ($1.3 million) respectively in the second quarter.

In case of Rang Dong ThermosFlask and Light BulbJoint Stock Company (RAL), the company got an import tax refund of over VND29 billion ($1.4 million) in the first six months of 2011. In the second quarter it incurred losses of over VND3.3 billion ($160,000) from traditional business. Over VND8 billion ($386,400) profits from other sources helped its contract positive profit figures.

However, industry experts assumed getting profits from non-traditional business lines did not deliver true images about the firms.