RO/RO BUSINESS BOOSTS LEIF HOEGH’S 3RD-QUARTER PROFITS

RO/RO BUSINESS BOOSTS LEIF HOEGH’S 3RD-QUARTER PROFITS    Leif Hoegh & Co., the diversified Norwegian shipping group, posted a 90-percent rise in net profit for the third quarter, largely thanks to improved results from its roll-on/roll-off and car-carrier activities.
   The group earned a net profit of $20 million in the latest quarter, up from $11 million in the third quarter of 2000. Operating profit rose to $28 million, from $16 million, during the same period. Group freight revenues decreased by 8 percent, to $168 million, from $205 million.
   “Improvements within the car-carrying business was the primary source for the substantial increase in the operating profit before sales gain and depreciation, but contract shipping and H'egh Lines also contributed to the good results,” the group said.
   HUAL, the roll-on/roll-off and car-carrier arm of the group, increased its operating profit to $23 million in the latest quarter, up from $11 million a year ago. The Hoegh group said that HUAL showed again its flexibility and strong position within the transportation of second hand cars and high/heavy cargo.
   Liquid natural gas contract shipping activities posted an operating income of $5 million, virtually unchanged from last year.
   The group’s Hoegh Lines business, which uses open hatch ships, made an operating profit of $3 million, up from $1 million in the third quarter of last year. However, Hoegh Lines’ freight revenues dropped to $18 million in the latest quarter, from $36 million a year ago.
      Hoegh’s reefer division posted an operating deficit of $93,000 in the third quarter, compared to a loss of $313,000 a year ago.
   Commenting on future trading prospects, Hoegh said that lower new car sales will probably have limited effect on the fourth quarter, but the uncertainty has increased for next year.