ISC takes charge against Mexico ferry

ISC takes charge against Mexico ferry    International Shipholding Corp. said it had third quarter net loss of $13.8 million, primarily the result of a $25.4 million non-cash impairment charge relating to its Mexico-U.S. rail ferry service.
   For the third quarter of 2009, the company reported net profit of $11.3 million.
   “The impairment charge, which writes down the book value of the rail ferry assets, reflects the company's determination that future cash flows generated by these operations, while positive, will most likely remain below previous estimates and a downward adjustment of the book value is justifiable,” International Shipholding said.
   Ironically, the company took the charge in a quarter that the ferry had an uptick in results due to an increase in northbound cargo volumes because of outages in cross-border Mexico rail service. Rail service was shut down in parts Mexico this summer because of damage from Hurricane Alex.
   Excluding the non-cash impairment charge, the company reported slightly improved profit of $11.6 million for the three months ended Sept. 30.

Johnsen

   Niels M. Johnsen, the company’s chairman, told American Shipper the decision to take the charge was not related to the announcement that another company, NAFTA Gulf Bridge, plans to start up a roll-on/roll-off service between Mobile and Veracruz, Mexico, in mid-November. The International Shipholding service operates between Mobile and Coatzacoalcos, Mexico, about 130 miles southeast of Veracruz.
   International Shipholding had third quarter revenue of $74.4 million compared to $92.3 million in the same 2009 period.
   'Our fleet performed well in the third quarter, as we continue to meet the needs of our clients in niche markets,” Johnsen said.
   The company is continuing to “carefully evaluate accretive business opportunities; therefore, our recent shelf registration positions us to access up to $200 million in capital when accretive business opportunities arise.'
   The company filed a prospectus with the Securities and Exchange Commission on Wednesday that would allow it to sell “common stock, preferred stock, debt securities, warrants and units in one or more offerings.” ' Chris Dupin