Joseph Bonney, Senior Editor | Feb 15, 2012 9:08AM EST
CSAV lost $1.24 billion last year, including $959 million on continuing operations, but the Chilean carrier said its deficit narrowed during the fourth quarter and that a restructuring is starting to yield results.
The losses compared with a $182 million profit in 2010. Revenue fell 1.2 percent to $5.151 billion for the year. CSAV posted a $145 million loss on continuing operations in the fourth quarter.
The company reported a $280 million loss on discontinued operations, including a $205 million provision for losses that will be incurred this year as a result of a restructuring that began last May.
CSAV planned to a second shareholder stock offering Wednesday that the company said would complete a $1.2 billion capital infusion. With its restructuring, CSAV plans to make its SAAM terminal, tug and logistics unit into a separate company.
“We are a new company today. Through this restructuring we are better prepared to face the scenario affecting the industry and on a better footing for benefiting when market conditions improve,” said Oscar Hasbún, CSAV’s general manager, shipping-containers. The restructuring includes operating changes as well as new capital.
Joint services now account for 90 percent of CSAV operations, compared with 30 percent in early 2011. CSAV has been returning chartered ships and expects the percentage of owned ships in its fleet to rise to more than 30 percent in the second half of 2012 from 9 percent at the start of 2011.
CSAV said its SAAM unit’s operating profit rose 15 percent to $64 million last year as revenue rose 18 percent to $426 million.
-- Contact Joseph Bonney at jbonney@joc.com. Follow him on Twitter @josephbonney.