Weak economy hurts Halterm

HALIFAX (Feb. 25, 2002) — Canada’s largest East Coast container terminal said lower volume led to reduced profitability and revenues for the fourth quarter and the year ended Dec. 31.

Halterm, in Halifax, said revenue for the fourth quarter declined 12% to $11.9 million, compared with the same quarter in 2000. Net income was $1.4 million in the quarter compared to a loss of $0.7 million in 2000. Included in the 2000 figures is a one-time expense of $1.9 million for the write off of costs associated with the lease renewal.

Volume for the quarter was 45,118 container lifts compared to 49,374 in the same quarter last year.

Revenue for the year declined 8% to $48.9 million, compared with 2000. Net income was $5.4 million in the year compared to $5.6 million in 2000, after the write off of $1.9 million associated with the lease renewal. Volume in 2001 was 181,493 container lifts compared to 198,934 in 2000.

Heavy weekend vessel and rail congestion, combined with harsh winter conditions, resulted in lower productivity and increased operating costs during the first six weeks of 2001, Halterm said. As the weather improved vessels were able to maintain their regular schedules and the imbalance of rail car improved dramatically allowing the efficiency of the operation to improve each quarter throughout the year.