Seaboard Marine’s profits recover

Seaboard Marine’s profits recover    Seaboard Marine’s operating income rose sharply in the quarter ended July 3 to $16.6 million, from $2.3 million in the second quarter of 2003, as its activities recovered from last year’s damaging general strike in Venezuela.
   Net sales of the U.S./Latin American specialist carrier increased $14.2 million in the second quarter to $118.2 million.
   Seaboard Corp., the parent company of Seaboard Marine, said the higher revenue came from improved cargo volumes and, to a lesser extent, increased average cargo rates.
   “The 2003 periods were significantly negatively impacted by the general strike in Venezuela which began in 2002 and continued into February of 2003, resulting in the discontinuance of all port calls to that country,” Seaboard noted. While political and economic instability remains in Venezuela and that market has not yet fully recovered, cargo volumes have continued to increase during 2004, the parent company said.
   Seaboard’s cargo volumes also increased in most markets outside Venezuela.
   For the six-month period ended July 3, Seaboard’s operating income climbed to $24 million from $1.4 million in the first half of 2003. Net sales for the latest six-month period were $229.1 million, as compared to $196.3 million in the first half of last year.
   Seaboard warned that its management couldn't predict whether economic conditions will change in the Venezuelan and related markets.
   The company said it is in compliance with the U.S. Maritime Transportation Security Act and corresponding international regulations under the International Ship and Port-facility Security Code implemented on July 1. Seaboard Marine “to date has not experienced any trade disruptions” due to the new rules, it added. The regulations require comprehensive security assessments and plans for vessels and facilities in the United States and throughout the world.
   Seaboard’s management said it couldn't predict if any disruptions will occur in the future if non-U.S. ports do not fully comply.