(in thousands of dollars, except per share figures)
ST. CATHARINES, ON, Aug. 9 /CNW/ -
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Three Months Ended Six Months Ended
June 30 June 30
2006 2005 2006 2005
Revenue from continuing
operations $162,671 $149,293 $215,448 $197,144
Net earnings (loss):
Continuing operations $17,873 $16,239 $4,984 $620
Discontinued operations 725 (175) 725 461
Total $18,598 $16,064 $5,709 $1,081
Earnings per share
Continuing operations $4.58 $4.17 $1.27 $0.16
Discontinued operations 0.19 (0.05) 0.19 0.12
Total $4.77 $4.12 $1.46 $0.28
Dividends paid per common
share: $0.35 $0.25 $0.60 $0.50
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The Corporation is reporting earnings from continuing operations for the
three months ended June 30, 2006 of $17,873 compared to $16,239 for the same
period in 2005, and earnings from continuing operations for the six months
ended June 30, 2006 of $4,984 compared to $620 for the same period in 2005.
The improvements in earnings for both the three and six months ended June
30, 2006 compared to the comparable periods in 2005 were a result of the
following factors:
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- The product tanker segment earnings improved principally due to
additional operating days as a result of the Algosea and Amalienborg
entering service in July 2005 and April 2006 respectively, and
reduced earnings for the six months ended June 30, 2005 due to costs
associated with the wind-up of U.S. operations relating to the
transfer of registration of a tanker vessel from U.S. to Canadian
flag. Also, in 2005, the Corporation had a gain on the sale of a
vessel which it did not have in 2006.
- The real estate segment earnings increased partly due to earnings
from the new real estate property in Waterloo, Ontario.
- Decrease in income tax expense of $2,805 due to the announcement by
the Federal government concerning future corporate tax rate
reductions.
- Foreign exchange gains on translation of foreign denominated assets
and liabilities.
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The above increases in earnings were partially offset with reductions in
both the domestic dry-bulk segment and ocean shipping.
For the three months ended June 30, 2006 compared to same period in 2005,
the domestic dry-bulk segment experienced a decrease in earnings. Even though
increases were achieved in net freight revenues due to improved efficiencies,
they were more than offset by higher operating expenses, primarily for
self-insurance relating to vessel accidents and an increase in expense
relating to the repairs and maintenance during the winter lay-up period. For
the six months ended June 30, 2006, the reduction in earnings experienced in
the three months ended June 30, 2006 was partly offset by improved earnings
for the three months ended March 31, 2006 due to additional operating days and
increased earnings of the ship repair business. Ocean shipping experienced a
reduction in earnings due to a reduction in operating days due to the
scheduled dry-docking of two vessels.
On July 5, 2006 the Board of Directors declared a dividend of $0.35 per
common share payable on September 1, 2006 to shareholders of record on August
18, 2006.
