Crowley Maritime broke even in second quarter

Crowley Maritime broke even in second quarter    Crowley Maritime Corp. reported a near-breakeven net income of about $400,000 on revenue of $255.6 million in the second quarter, as compared to net earnings of $1.9 million and revenue of $240.3 million in the same quarter of 2003.
   Crowley Maritime, the parent company of Crowley Liner Services and several other shipping businesses, said the decrease in earnings was due to a payment of $6.3 million to settle asbestos-related claims, an increase in dry-dock amortization as a result of an increase in the number of vessels dry-docked, and other factors.
   The group’s operating income fell to $5.2 million in the latest quarter, from $8.9 million in the second quarter of 2003.
   Operating income from liner services increased slightly to $6.7 million in the second quarter, representing 4 percent of revenue, from $6.6 million in the same quarter of 2003. By contrast, operating revenues from the liner services segment rose 10 percent to $156.3 million over the same period. The increase came from a 7 percent increase in average revenue per TEU, a 3 percent increase in container and non-container volume, and an increase of 71 percent in revenue from other logistical services.
   The carrier said its increase in average revenue was a result of rate increases for services between the United States and Puerto Rico and between the United States and certain Caribbean islands, and increases in bunker surcharges for its Latin American service. Crowley Liner Services’ container and non-container volume increased to 148,994 TEUs in the second quarter of 2004 from 144,586 TEUs during the second quarter of 2003 due to a U.S./Haiti service which commenced operations during the third quarter of 2003.
   The increase in second quarter freight rates was absorbed by a rise in the carrier’s costs. Operating expenses went up 9 percent to $141.1 million. In addition, depreciation and amortization costs for liner services soared 39 percent to $3.2 million in the second quarter, due to dry-dock expenses for a larger number of vessels.
   The increase in other logistical service revenues included in the figures for liner services was primarily due to revenues generated by a transportation service provider acquired in July 2003.
   Crowley Maritime’s activities other than liner shipping posted mixed results in the second quarter.
   The company’s energy and marine services arm narrowed its second quarter operating loss to $4.7 million from $7.5 million.
   The ship assist and escort services arm of Crowley Maritime reported a fall in second operating income to $1.3 million from $3 million.
   Crowley Maritime’s oil and chemical distribution and transportation services saw a decline in their operating income to $1.9 million from $6.8 million in the same quarter of last year.
   For the first six months of the year, Crowley Maritime’s net deficit widened to $4.9 million from $3.1 million in the first half of 2003. Operating income decreased to $4.8 million from $7.1 million in the first six months of 2003. Group revenue increased to $482.3 million from $460.3 million.