Major Chinese Shipbuilder Sees Profits Nose-dive

China Rongsheng profit dives as new ship orders dry up.

China Rongsheng Heavy Industries Group, the country's largest private shipbuilder, posted its sharpest fall in half-year profit - down 82 percent - on a dearth of new orders, putting further pressure on its stretched balance sheet reports Reuters.

In a stubbornly downbeat global economy, the shipping industry has suffered widespread losses, with many small and medium sized Chinese builders close to bankruptcy as bankers cool on a sector struggling with a glut of vessels ordered during the boom times.

The company said it won orders for just two new vessels with a total contract value of $55.6 million. In the first half of last year it won orders for 24 vessels worth $1.08 billion.

Source: Reuters