International Shipholding profit slips

International Shipholding profit slips

   International Shipholding Corp. reported second quarter net profit of $2.8 million, compared to $9.6 million in the same 2010 period.

   Revenue for the quarter ending June 30 was $70 million compared to $85 million in the same 2010 period.

   Mobile-based International Shipholding operates a diverse fleet of ships that “performed as expected,” said Niels M. Johnsen, chairman and chief executive officer.

   The company said gross voyage profit decreased from $18.6 million to $12 million. The “the lower results are directly attributable to reduced supplemental cargo volumes. While supplemental cargoes in the second quarter of 2010 were above historical levels, they have returned to normal levels in 2011, as expected.”

   The company said its results were lower than a year earlier, in part because of the scrapping of a container vessel in the third quarter of 2010.

   International Shipholding’s subsidiary CG Railway operates a rail ferry between Mobile and Coatzacoalcos, Mexico. It reported higher results for the quarter as compared to the second quarter of 2010, as northbound cargo volumes in 2011 continue to outpace the 2010 period.

   Johnsen said the firm “secured permanent financing to acquire two car carriers we agreed to purchase in the first quarter by exercising our early buyout options with the lessors.”

   The firm also took delivery of two small bulk ships as part of a joint venture. The 10th and final vessel of the joint venture was delivered on July 20.

   'Entering the second half of 2011, we continue to maintain a diversified portfolio of medium to long-term contracts, which enables the company to achieve predictable cash flows during a time when market conditions are volatile, Johnsen said.

   “Volatile markets produce opportunities, and we continue to seek opportunities to both grow the company and to create additional shareholder value,” he added.