Stolt Nielsen: volumes, rates under pressure

Stolt Nielsen: volumes, rates under pressure    Stolt-Nielsen S.A. reported second quarter net profit of $27.7 million, compared to $40.8 million in the same 2008 period.
   Revenue in the quarter was $393.3 million, compared with $504.5 million a year earlier, said Stolt-Nielsen, the parcel tanker operator, which also has interests in the liquid terminal, tank container and aquaculture businesses.
   Results improved over the first quarter, when it earned $14.4 million on revenue of $392.3 million.
   “We remain concerned about the economic outlook and its potential impact,' said Niels G. Stolt-Nielsen, chief executive officer. 'We have seen significant declines in the volume of cargo shipped, reflecting the dramatic slowdown in global economic activity. The improvements in the second quarter were driven by short-lived inventory corrections following the dramatic destocking of inventory we saw in the first quarter. We expect volumes and rates to remain under pressure until a sustained economic recovery gets underway.
   “To counter the negative effects of the economic crisis, we have continued to implement measures to conserve cash, enhance our credit and collections processes, lock in interest rates and reduce costs. A hiring freeze also remains in effect. With our strong balance sheet and available liquidity, and the fact that long-term financing for our newbuilding program is secured, we believe SNSA is well positioned to manage the challenges and uncertainty ahead,” he said.