American Commercial Lines benefits from barge freight climb
Inland barge operator American Commercial Lines Inc. said its revenues and earnings have soared as freight rates for both dry and liquid cargos climb.
ACL's net income for the quarter ended Sept. 30 was $28.4 million compared to $3.5 million a year earlier. Revenue for the third quarter increased 59 percent to $267 million.
Year to date net income was $57.3 million compared to $3.2 million in the first nine months of 2005. Revenue for the nine months was $677 million, a 38 percent increase over the same 2005 period.
'Results for the first nine months of this year exceed the previous peak for any full year in the company’s history. Industry fundamentals continue to be very strong,' said Mark R. Holden, president and chief executive officer.
The company said increased revenues were driven in part by fuel neutral rate increases of 32 percent on the dry freight business and 11 percent on the liquid freight business compared to the third quarter 2005.
Holden said the company expected to sell its Venezuelan operations to
'focus on our core businesses and will allow us to further reduce indebtedness.'
He added the company had reconfigured its shipyard’s footprint and process-flow to allow for more efficient and safer operations.