Hutchison Whampoa reported a 5 per cent drop in 2004 pre-tax profit.

Hutchison Whampoa reported a 5 per cent drop in 2004 pre-tax profit. The Hong Kong conglomerate expects much lower losses in 2005 and a positive cash flow in 2006. The 3G losses contributed to a decrease in the company’s pre-tax profit from HK$7 billion in 2003 to HK$6.7 billion in 2004. Hutchison has been selling businesses in recent years to offset the negative impact of 3G on the rest of its port-to-retail operations. This included the sale of a 20 per cent stake in a China venture to its partner Procter & Gamble, which yielded HK$13.8 billion. The 3G business, which began service in 2003, is expected to become self-financing in 2005-06.