Citic Pacific dips into red ink on forex losses Omits final dividend, won't pay directors' bonuses; chairman sees tough 2009

HONG KONG (MarketWatch) -- Diversified conglomerate Citic Pacific said Wednesday it swung to a loss of HK$12.66 billion ($1.62 billion) in 2008 after suffering HK$14.63 billion in losses on a number of foreign exchange contracts.
The company's 2007 net income stood at HK$10.84 billion.
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CTPCY 5.81, -0.40, -6.4%) , which has interests in steel making, mining, power generation and trading, infrastructure and air-cargo services, said the board has also decided to scrap final dividend payment and not pay any bonuses to directors for 2008.
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"Our company is financially secure following the re-capitalization by the Citic Group," the company said in a statement, referring to its Chinese state-owned parent.
"Shareholders' funds stood at HK$50 billion at 31 December 2008. ... Maturing debt in the next few years requires re-financing and, considering today's environment, work on this will begin shortly," it said.
The company's revenue increased 20% to HK$46.42 bililon.
Chairman Larry Yung said Citic Pacific is facing a difficult operating environment in 2009, "which will impact this year's performance."
Still, "as we look at global economic conditions and compare the situation in China, we remain encouraged. We have sufficient resources and are well placed to capture future opportunities," Yung said.