Trailer Bridge reports drop in earnings, but volume climb

Puerto Rico container carrier Trailer Bridge Inc. said it had record third quarter revenue, but earnings amounted to just $34,444 compared to $364,813 in the same 2007 period.

   Revenue was $35.4 million for the period compared to $28.2 million in the third quarter of 2007, a 25.4 percent increase. The company said excluding the effect of fuel surcharges, revenue increased 15 percent.

   Southbound container volume was up 19.6 percent, new car volume rose 26.4 percent and northbound container volume improved 22.6 percent.

   John D. McCown, chief executive officer, said, The results show record revenue and revenue growth in a flat Puerto Rico economy. The September storms adversely impacted third quarter profit by $1 million but the large majority of that is timing and will be additional profit in the fourth quarter.

   An antitrust investigation by the Justice Department of domestic shipping companies, which last month resulted in employees from Trailer Bridge competitors Sea Star and Horizon Lines pleading guilty, has increased Trailer Bridge's legal expenses. McCown said he expected those to drop in the fourth quarter and will be about half of the $921,000 reported in the third quarter.

   Based on the most recent information we have on current fuel costs and surcharge levels, we also expect to see in the fourth quarter a net beneficial fuel effect of approximately $2 million compared to the third quarter. When you factor in each of these elements, we are very confident in our ability to report a strong fourth quarter in all respects and are pleased with the continuing trends in our business.

Source: American Shipper