TBS “taking a cautious approach”

TBS “taking a cautious approach”

TBS “taking a cautious approach”

TBS International said it had third quarter profit of $59.1 million compared to $27 million in the same 2007 period.
   Revenue was $183.3 million for the quarter versus $91.6 million in the same 2007 period.
   “We are in unprecedented times for the global economy and dry cargo shipping industry,” said Joseph E. Royce, chairman, chief executive officer and president. “The stagnation caused by the crisis in the financial community has interrupted normal trade and reduced cargo movement. When normal trading patterns resume, we believe that the inevitable global recession that we are facing will result in reduced levels of cargo movement. At TBS we are taking a cautious approach.”
   “He said the company is conserving its cash and delaying plans to build additional tweendecker ships.
   “We are preparing for difficult circumstances while positioning the company to take advantage of opportunities that present themselves,” Royce said.
   TBS runs a fleet of 24 tweendeckers and 23 dry bulk carriers with a further 6 tweendeckers on order for delivery in 2009 and 2010.
   Investment banking firm Dahlman Rose & Co. said the company’s “debt levels are relatively low compared to its many of its peers, buoyed by its second quarter equity raise of $95 million. The company however is at risk of vessel value reductions, which could impact loan covenants down the line — an issue affecting many dry cargo shipping companies. Thus we believe management is taking the most prudent approach by conserving cash to allow for flexibility going forward.”