American President Cos. (APC) had an improvement in rates and cargo, but a drop in exports kept the liner company's earnings below the level of the previous year's fourth quarter.
Nevertheless, APC finished out the year slightly ahead of 1991, posting net income of $56.5 million for 1992 vs. $55.7 million for 1991.For the fourth quarter, APC had net income of $10.6 million, slightly below the $12 million earned in the previous year's fourth quarter.
APC's earnings results were adjusted to reflect an accounting change in the way revenue and expenses are recorded for transportation companies. The accounting changes resulted in a onetime charge of $21.6 million on 1992 yearly earnings and a $10.5 million charge on 1991 earnings. Without those charges, net income would have been $78.1 million for 1992, compared with $66.2 million for 1991.
Yearly revenue amounted to $2.5 billion in 1992, compared with $2.4 billion in the previous year. Operating income was $140.1 million in 1992, compared with $142.8 million in 1991.
The company noted that Desert Storm operations were a "very significant contributor" to operating results in 1991. That revenue - which primarily came from detention charges for containers still held by the military - dwindled over 1992. For the fourth quarter, Desert Storm detention revenue contributed only $2.9 million to operating income, compared with $11 million for the same period a year earlier.
However, the company reported that its rates and cargo mix improved in the fourth quarter in its ocean carrier operations - handled through American President Lines. Those improvements were offset somewhat by a 16 percent decline in export shipments, a decrease in rates and changes in cargo mix in the intra-Asia liner market, and lower volumes on the company's domestic intermodal train network - handled through its APL Land Transport subsidiary.
The company had average revenue of $4,025 for a 40-foot container (FEU) of import freight during the fourth quarter of 1992, compared with $3,770 an FEU a year earlier. Export freight revenue per container amounted to $3,453 an FEU for the 1992 fourth quarter, compared with $3,174 an FEU a year earlier. Intra-Asia cargo netted $1,982 an FEU for the fourth quarter, compared with $2,194 a year ago and domestic intermodal movements received an average of $1,364 an FEU, compared with $1,307 an FEU a year earlier.
The company said it expected first-half earnings for 1993 to be less than those recorded in the first half of 1992 because of the diminishing revenue
from Desert Storm activities.