CP Ships’ profits up 77% in last quarter as public company

CP Ships’ profits up 77% in last quarter as public company    CP Ships reported a 77 percent leap in net income to $55 million in the third quarter, its last as a publicly listed company following its takeover by Hapag-Lloyd parent TUI AG. CP Ships’ net income in the third quarter last year was $31 million.
   CP Ships said higher freight rates offset lower volumes with average freight rates up 17 percent from the third quarter 2004.
   Operating income climbed 66 percent to a record $68 million in the latest quarter, which included $7 million in professional fees incurred during the sale to TUI.
   Revenue improved 11 percent to $1.07 billion, from $966 million in the third quarter 2004, despite a 6 percent drop in traffic volume to 546,000 TEUs.
   CP Ships’ quarterly revenue from its core transatlantic market improved 10 percent to $495 million, compared to the third quarter 2004. Average freight rates jumped 30 percent over the same period last year with volumes down 13 percent from the third quarter last year.
   “Our transatlantic performance was outstanding and confirmed our decision last year to tighten capacity and focus on improving cargo mix and freight rates. As expected, Australasia and Latin America continued to perform well. Asia disappointed again. We expect continuing excellent performance for the rest of the year,” said Ray Miles, CP Ships’ chief executive.
   For the year-to-date, CP Ships’ net income soared 178 percent to $103 million from $37 million a year ago. Operating income is up 85 percent to $144 million, while revenue has increased 16 percent to $3.10 billion.
   CP Ships also said it has called a special meeting of its shareholders for Dec. 14 to transfer the remaining CP Ships shares to TUI via an amalgamation.