04 October 2012 10:54 [Source: ICIS news]
LONDON (ICIS)--Norwegian shipping firm Stolt-Nielsen has posted a 68% drop in profits as a result of a weakening global economy, the company said on Thursday.
Net profit attributable to shareholders fell to $7.1m ($5.5m) from $22.4m in the same period a year earlier.
Sales were also down for the three months ended 31 August, dropping 2.5% year on year to $516.4m, compared with $529.8m in 2011. The company also reported a sharp drop-off in earnings compared to the second quarter of 2012, with net profit attributable to shareholders down 81%.
The profit slump is “primarily” due to weak demand for its tanker services, with subsidiary Stolt Tankers reporting a $0.8m loss for the quarter.
Stolt-Nielsen also reported a $2.3m impairment for its Stolthaven Terminals business as a result of flooding caused by Hurricane Isaac. Quarterly operating profit for the unit was $12.2m, compared to $15.8m in the third quarter of 2011.
Company CEO Niels Stolt-Nielsen said: “"Stolt-Nielsen Limited's weakened result in the third quarter reflects the underlying weakness in the parcel tanker market driven by a slowing global economy. Stolt Tankers reported an operating loss, as overall market conditions remained soft and unscheduled drydockings resulted in fewer sailing days. “
($1 = €0.78)
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