02 July 2009 12:05 [Source: ICIS news]
LONDON (ICIS news)--Stolt-Nielsen posted a 32% year on year drop in second-quarter net profit to $27.8m (€19.7m), down from $40.8m, as cargo volumes were hit by the effects of the economic downturn, the chemicals tanker operator said on Thursday.
Revenues fell 22% compared with the second quarter of 2008 to $393.3m, essentially unchanged from the first quarter of this year.
The largest business segment Stolt Tankers returned to profitability, helped by a reduction in operating costs. The business went from a $2.5m operating loss in the first quarter to generate a $1.7m profit in the second quarter.
“While [our] second-quarter results nearly doubled compared with the previous quarter, we remain concerned about the economic outlook and its potential impact,” said CEO Niels Stolt-Nielsen.
“We have seen significant declines in the volume of cargo shipped, reflecting the dramatic slowdown in global economic activity,” he added.
Stolt-Nielsen said it had implemented several cost-cutting measures to counter the negative economic effects, including a hiring freeze, while the company has cancelled some newbuildings.
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