BEIJING (Bloomberg) — China Shipping Development Co., the dry-bulk arm of the nation's second-biggest shipping group, expects sales to tumble 44 percent this year as a slowing economy saps demand for raw materials

Sales will likely drop to 9.83 billion yuan ($1.4 billion) from 17.6 billion yuan last year, the Shanghai-based company said in a statement to the city's stock exchange. That's lower than all 18 analyst estimates compiled by Bloomberg.

Dry-bulk shipping rates have fallen 83 percent from a record in May, as China's waning growth curbs demand for iron ore and coal. China Shipping Development has already agreed to 39 percent price cuts for cargos equal to about two-thirds of its 2008 domestic dry-bulk volume.

The company expects operating costs to fall 39 percent this year to 6.81 billion yuan. It will sell five billion yuan of mid-term notes in the first half.

The shipping company plans to add 19 vessels this year, including 14 oil tankers and five dry-bulk ships. The company had a fleet of 167 ships as of December 31.

Net income rose 17 percent last year to 5.37 billion yuan after the company locked in domestic bulk rates at the beginning of the year. Shareholders will get a three yuan dividend for every 10 shares owned.