LOWER SOUTH AMERICAN RATES IMPACT SEABOARD’S 2ND-QUARTER PROFITS
Seaboard Marine, the U.S./Latin America shipping line, reported slightly lower second-quarter and first-half profit results following a fall in freight rates in the South American trade.
Operating income for the second quarter was $5.6 million, down from $6.4 million in the same quarter of 2001. Net sales in the latest quarter were $96.6 million, virtually unchanged from the $96.7 million sales a year earlier.
For the first six months of this year, Seaboard Marine saw its operating income drop to $9.2 million, from $11 million in the first half of 2001, while net sales totaled $187.5 million, up slightly from $186.6 million last year.
The decrease in operating income in the quarter and half year “primarily reflected the lower margins due to declining cargo rates,” Seaboard said.
From March of this year, Seaboard experienced declining cargo volumes to certain South American markets as the result of political instability in the region, but increases in other markets.
Seaboard warned that the duration and extent of the political instability in South America will continue to affect future results, while shipping demand remains depressed.
The company expects to report a lower operating income for the remainder of the year, when compared to results in 2001.
