SINGAPORE (Nov 27): Cogent, the logistics player that is the target of a takeover offer, reported a 6% fall in 3Q earnings to $7.4 million from a year ago on higher operating expenses.
See: Cogent gets $1.02 per share cash offer from Cosco Shipping
Revenue rose 4% to $35.3 million mainly driven by higher business volume handled for the container depot management services and transportation management services.
However, operating expenses rose 6% to $25.7 million on higher depreciation, contract services expenses, fuel and utilities, storage and handling charges, repair and maintenance and hire of vehicle and equipment.
In its outlook, Cogent says it will continue to keep a tight reign on operating costs and will explore new opportunities to grow its business in the region. Despite volatility in the geo-political and business environment around the world, the group also expects the Singapore economy to grow at a positive pace.
Cosco Shipping International (S) this month launched a $490 million cash buyout of Cogent Holdings at $1.02 each. Shares in Cogent closed at $1.01 on Monday.
