INSTABILITY IN SOUTH AMERICA HITS SEABOARD’S 3RD-QUARTER RESULTS

INSTABILITY IN SOUTH AMERICA HITS SEABOARD’S 3RD-QUARTER RESULTS    Seaboard Marine, the U.S./Latin America shipping line, saw its sales and operating profit decline in the third quarter because of instability in South America.
   Operating income for the third quarter decreased to $3.2 million, from $4.1 million in the third quarter of 2001. Net sales in the latest quarter were $91.8 million, 6 percent below their level a year earlier.
   “During the third quarter of 2002, the company experienced significant declines in cargo volumes to certain South American markets as a result of political instability in that region,” Seaboard said.
   The fall in operating income reflected declines in cargo volumes and, to a lesser extent, lower freight rates, the company added.
   For the first nine months of this year, operating income dropped to $12.4 million, from $15.2 million, as net sales decreased to $279.3 million, from $284.2 million.
   Seaboard warned that the duration of political instability in South America will affect its future results, as market demand remains depressed.
   The company said that its marine business would remain profitable this year, but its operating income is expected to be lower than in 2001.
   In early November, Seaboard Marine took over, and marketed under its own name, a former Northeast U.S./Dominican Republic/Haiti/Jamaica container service previously operated by Tecmarine Lines.