MOSCOW, June 17 (Reuters) - Russian rail group Transcontainer said on Monday that its first-quarter net profit fell by 7.5 percent in annual terms due to a weak pricing environment and reduced demand for container transportation in Russia.
The company said in a statement, however, that the worst period for the year is behind it and that it expects its 2013 profitability level to be in line with that seen in 2012.
Last year, the company’s profit rose by 34 percent to 5.2 billion roubles ($164.4 million).
Net earnings in the first quarter fell to 1.1 billion roubles ($34.8 million), while revenue inched up by 0.3 percent to 8.6 billion roubles.
The company, which amounts for nearly half of Russia’s container transportation, saw its rail transportation volumes decrease by 1.3 percent during that time.
“The weaker demand for rail cargo transportation (and) higher levels of competition in the container segment put operator tariffs under pressure in the first quarter of 2013 and the pricing environment has not been restored yet” Transcontainer said in a statement.