MPC Capital AG, Germany's largest closed-funds manager, said first-quarter profit declined 70 percent as the company generated less revenue and costs increased.
Net income fell to 2.34 million euros ($3.6 million) from 7.7 million euros a year earlier, the Hamburg-based company said in an e-mailed statement today. Revenue dropped 30 percent to 29 million euros.
MPC, which specializes in funds that invest in ships, reorganized its business to offer more non-maritime funds and start selling to institutional investors. The company plans to introduce an oil rig and renewable energy fund in the second quarter to boost sales and profit.
``In the placing of closed funds, it's really decisive when products are available, and that weighed on our results,'' Chief Financial Officer Ulf Hollaender said in a Bloomberg Television interview today. ``We will have a better second quarter but the first half will probably lag behind'' that of 2007.
MPC has declined about 31 percent this year, valuing the company at 449 million euros. The company confirmed its full- year net income forecast of 50 million euros.
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