Seaboard Marine hit by higher costs

Seaboard Marine hit by higher costs    Conglomerate Seaboard Corp said its marine division had a second quarter operating loss of $11.1 million compared to an operating profit of $11 million in the same period a year earlier.
   Marine division revenue was $236.5 million for the quarter ending July 2 compared to $215.6 million in the year-earlier period. The company said the increases was primarily the result of increased rates in most markets served during 2011 and higher cargo volumes as economic activity generally increased in 2011 compared to 2010.
   Seaboard Marine offers containerized shipping service between the United States, the Caribbean Basin, and Central and South America. It has a fleet of 40 vessels and offers service between the United States and more than 25 countries.
   It’s parent company involved in a variety of other agriculture business and power generation. Results for the entire company are available here.
   Net sales for the marine segment increased $20.9 million and $47.2 million, respectively, for the three- and six-month periods of 2011, compared to the same periods in 2010. The increases are primarily the result of increased rates in most markets served during 2011 and higher cargo volumes as economic activity generally increased in 2011 compared to 2010.
   The company said the loss was “primarily the result of cost increases for fuel, vessels, trucking and charter hire on a per-unit shipped basis, especially in the second quarter of 2011 when fuel and trucking expenses increased significantly more than management anticipated.”
   Partially offsetting the decreases were higher cargo rates, the company said. It said based on recent significant cost increases for fuel and trucking, it currently anticipates continuing operating losses in the segment for the remainder of 2011.
   Seaboard said it has budgeted $25.8 million for additional cargo carrying and handling equipment for the marine division in the remainder of the year. The company’s marine division spent $12.1 million in the first half of the year n capital investments.
   In addition, the company said management would evaluate whether to purchase additional containerships for its marine segment and dry bulk vessels of its commodity trading and milling segment during the remainder of the year.