INTERNATIONAL SHIPHOLDING REPORTS 50% FALL IN GROSS PROFIT
International Shipholding Corp., the parent company of Waterman Steamship, Forest Lines and Central Gulf Line, reported a 50-percent drop in gross voyage profit before depreciation and impairment loss on assets for the third quarter, to $11.5 million.
Its liner services business made a loss of $2.2 million in the latest quarter, compared to a profit of $3.0 million in the third quarter of 2000.
“This decrease is primarily due to the Waterman service experiencing a decrease in its inbound cargo volume due to depressed market conditions,” the company said. “As a result of lower volume, one of the vessels operating in this service was laid-up during this quarter.”
Gross voyage profit before depreciation and impairment loss on assets held for disposal for the company’s time charter contract business decreased from to $11.8 million, from $16 million in the corresponding period of last year. This decrease was primarily due to the completion of charter on four of the vessels under contract with the U.S. Military Sealift Command.
The company’s contracts of affreightment segment saw its gross profit decrease from $3.2 million for the third quarter of 2000 to $2.4 million for the same period this year.
Other activities of the company incurred a gross deficit of $416,000 in the latest quarter, compared to a profit of $803,000 for the third quarter of last year. The decrease was primarily due to the loss from the recently initiated Mexican service, International Shipholding said.
International Shipholding Corp. has re-classified several Lighter Aboard Ship vessels as assets held for disposal.
The company said that its board of directors decided in June to suspend quarterly dividend payments on common shares.