ICTSI unfazed by US tariffs for now
Citing its “limited exposure” to the world’s biggest economy, port operator International Container Terminal Services Inc. (ICTSI) said ongoing trade tensions in the United States “had no material impact” yet on its business, at least in the last month.
In a regulatory filing on Monday, ICTSI chair and president Enrique Razon Jr. recognized the “uncertainty over global trading arrangements and potential macroeconomic headwinds” brought about by US President Donald Trump’s “Liberation Day” tariffs.
“But for ICTSI, the direct impact of announced tariffs is small, owing to limited exposure to US trade,” the billionaire said in their disclosure.
This comes after Razon admitted that their Mexico operations could take the hardest hit from America’s reciprocal tariffs, particularly through ICTSI’s Manzanillo terminal.
Contecon Manzanillo had a 37-percent market share last year in Mexico, which Trump slapped with a 25-percent import tariff.
Still, ICTSI pointed out in its quarterly report that while the new duties could result in business continuity interference, changing prices in commodities and trade disruptions, the company had not seen any effect on its business as of April 29.
First quarter profit up 14%
In the first three months of the year, ICTSI benefited from higher volume, resulting in a record-high quarter income of $239.54 million, up by 14 percent.
Its top line likewise jumped by 17 percent to $745.42 million.
“Our balance sheet is robust and cash generation has been strong, reinforcing our ability to invest and capitalize on growth opportunities,” Razon said.
ICTSI also credited its earnings growth to higher operating income, although the increase was tempered by higher depreciation and amortization charges.
The company noted that its net income would have jumped by 25 percent if not for gains from the settlement of legal claims at ICTSI Oregon and the deconsolidation of PT PBM Olah Jasa Andal, Jakarta, that had been recognized in the same period last year.
In the first three months of the year, ICTSI handled a consolidated volume of 3.47 million twenty-foot equivalent units (TEUs), up by 12 percent from 3.1 million TEUs previously.
This was on the back of fresh contributions from the newly opened Visayas Container Terminal in Iloilo province, as well as volume recovery at its terminal in Ecuador.
