Dongwon riding huge drop in tuna raw material prices to deliver solid earnings
SEAFOODNEWS.COM [Maeil Business News] Sept. 30, 2014
Dongwon will deliver solid earnings in the third quarter based on profitable canned tuna business, IBK Investment & Securities said Tuesday.
“Canned tuna will see increased profits on weaker purse seine tuna prices, ” said Park Ae-ran, an analyst at IBK Investment & Securities. Park said that profitability of canned tuna, the company’s cash cow, will remain steady for some time.
Dongwon F&B purchases 75,000 metric tons worth of purse seine tuna from Thailand every year. However, tuna prices have nosedived since the latter half of the year on weaker demands from Europe. “The price of tuna, which cost $2,303 per metric ton in the second quarter of 2013, fell to $1,362 per metric ton in the second quarter of this year, ” Park said. “The price reportedly has been adjusted at a range of $1,400-1,500 recently in line with an increase in fish catch. ”
Park also said synergy from the merger between subsidiaries Samjo Celltech and Dongwon Home Food...
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