Investment income, tonnage tax lift Int’l Shipholding’s earnings

Investment income, tonnage tax lift Int’l Shipholding’s earnings    New Orleans-based International Shipholding Corp. increased net income to $4.1 million in the first quarter from $2.9 million for the first quarter of 2004, due largely to higher income from unconsolidated entities in which it owns shares and to the effect of the introduction of the U.S. tonnage tax regime.
   Operating income declined to $4.5 million from $5.9 million, but equity in net income of unconsolidated entities increased to $2.2 million from $1.2 million a year earlier.
   Improvement in the latest quarter resulted in part from an increase in net income from a share of a gain on the sale of a cement carrier vessel, which before tax was $1.2 million.
   Additionally, the improved first-quarter results reflected positive results from the operation of two used container vessels, the diversified shipping company said.
   International Shipholding’s revenue rose 6 percent to $69.8 million from $65.8 million.
   Its U.S.-flag Lighter Aboard Ships (LASH) liner service saw a continuation of strong cargo volumes, but its results were negatively impacted by higher operating expenses primarily attributable to increased fuel costs.
   International Shipholding subsidiaries Waterman Steamship and Forest Lines operate the LASH vessels.
   Participation under the new U.S. “tonnage tax” regime for the company’s U.S.-flag operations reduced International Shipholding’s effective tax rate on earnings before equity in net income of unconsolidated entities to 13.5 percent, compared to 37 percent in the first quarter of 2004. The company’s income taxes fell more than two thirds to $298,000 in the first quarter, from $995,000 a year earlier.
   International Shipholding is listed on the New York Stock Exchange.