Higher 4th-quarter profit at Tropical Shipping

Higher 4th-quarter profit at Tropical Shipping    U.S./Caribbean niche carrier Tropical Shipping reported fourth-quarter operating income of $9.1 million, up marginally from the $8.8 million income reported for the same quarter of 2002.
   Nicor, the parent company of Tropical, said the improvement was primarily due to higher volumes shipped, although this was partially offset by lower average rates in the fourth quarter.
   Tropical’s fourth-quarter revenue edged up to $74.9 million from $74.4 million a year earlier. Nicor did not disclose the net income of its shipping subsidiary.
   For 2003, Tropical increased its operating income 7 percent to $22.7 million in 2003 from $21.2 million in 2002, on higher volumes shipped and higher average rates. Operating revenues rose 2 percent to $272.2 million from $266 million in 2001.
   Traditionally one of the industry’s container carriers with the highest operating profit margins as a percentage of revenue, Tropical lifted its operating margin to 8.3 percent in 2003, from 8 percent in 2002.
   “The full year volume improvements were due primarily to an acquisition made in April 2002,” Nicor said, referring to its takeover of Tecmarine.
   “We still had a year of solid performance in our shipping segment,” said Thomas L. Fisher, Nicor’s chairman and chief executive officer. Nicor expects “modest improvement” in the operating results of Tropical this year.
   The improved 2003 profits at Tropical follow the announcement of substantially improved 2003 financial results by CP Ships, Hanjin Shipping, Evergreen Marine Corp. (Taiwan) and Matson Navigation, on the back of the worldwide recovery of the container shipping market. This trend is expected to be confirmed in the next few weeks, when P&O Nedlloyd, Orient Overseas (International) Ltd., Neptune Orient Lines, A.P. Moller-Maersk and Hapag-Lloyd report their 2003 results.