Barge line says volumes down
Barge operator and builder American Commercial Lines Inc. said it had a second quarter net loss from continuing operations of $1.4 million compared to a $2.9 million loss from continuing operations in the same 2009 period.
The company said revenue fell because of less work for its shipyard.
Revenue for the quarter ending June 30 decreased 24.8 percent to $164.3 million. Transportation revenue increased 3 percent to $152.4 million, while manufacturing revenue fell 83 percent to $11.9 million due to lower volumes.
“With revenues down, we focused primarily on cost control, a path that drove a $10.4 million improvement in the transportation segment’s operating income compared to the prior year quarter,' said Michael P. Ryan, president and chief executive officer. 'Our manufacturing business volumes declined significantly as potential customers are delaying capital spending for new barges. We have right-sized our manufacturing business during this downturn and were still able to generate positive operating income in the first half, despite the negative impact of a month-long labor strike in April.”
Ryan said the company has seen “some volume recovery in the liquids and metals transportation markets, but volumes remain significantly below pre-recession levels. Pricing levels appear to have stabilized as well, but are also well below levels achieved in periods of normal volume.”