TRAILER BRIDGE POSTS HEAVIER LOSSES

TRAILER BRIDGE POSTS HEAVIER LOSSES    Trailer Bridge Inc., the U.S. mainland/Puerto Rico shipping line, reported a net loss of $9.6 million for the fourth quarter and a loss of $10.3 million for the year ended Dec. 31, showing a marked deterioration in its finances.
   The operating result for the latest quarter was a loss of $5.1 million, as compared to operating income of $4.1 million a year earlier. Revenues for the quarter increased to $23.5 million, from $22.5 million in the corresponding period in 1999, but the company posted a net loss of $9.6 million, compared to a net income of $1.9 million in the fourth quarter of 1999.
   For the year, the operating deficit widened to $4.4 million in 2000, from about $120,000 in 1999, while the net annual loss reached $10.3 million, as compared to a deficit of $2.1 million in 1999.
   The company blamed the losses on overcapacity, a market decline and lower yields in the Puerto Rico trade, combined with delays in sailings that reduced revenues included in the fourth-quarter period.
   “Even excluding schedule-related revenue distortions, Trailer Bridge’s results were a major departure from anticipated results,” said John D. McCown, chairman and chief executive officer. “Market participants are in a brutal price war and are experiencing extraordinary losses in the endgame of the long overdue market shakeout.”
   Trailer Bridge said its core trailer volume to Puerto Rico increased 17.5 percent in the fourth quarter, compared to the year earlier period. By contrast, total car and other vehicle volume was down 16.8 percent compared to the year earlier period.
   In the fourth quarter, Trailer Bridge expanded its Port Newark/San Juan service to a weekly frequency from its prior bi-weekly frequency. The carrier said it has increased its overall market share of freight moving in trailers or containers, but yields have decreased.
   In December, the company’s cash amounted to $865,165 and working capital was $3.1 million, the carrier said. In late December, Trailer Bridge finalized a $29-million financing agreement with General Electric Capital Corp.
   “Trailer Bridge’s projected cash flows from operations indicate that there is sufficient available liquidity to meet all of its present and anticipated obligations and requirements,” the company said.
   Trailer Bridge’s announcement of heavier losses follow the recent filing for Chapter 11 bankruptcy protection    by NPR/Navieras, the major carrier in the mainland/Puerto Rico trade, in conjunction with its parent company and affiliates.