International Shipholding 1Q profit rises on cost-cutting efforts, U.S.-flag coal business

International Shipholding profit up on cost cuts

MOBILE, Ala. — International Shipholding Corp. on Wednesday reported higher first-quarter profit as cost-cutting efforts offset a slump in revenue as shippers struggle with still-weak demand.

The freight-shipping company, which has been exploring a possible sale for several months, earned $10.6 million, or $1.44 per share, in the latest period. That compares with $9.5 million, or $1.31 per share, a year ago.

Revenue fell 26 percent to $72.9 million from $98.1 million as U.S.-flag coal carrying business only partly offset a drop in time-charter business.

However, the company cut voyage costs even more sharply, by 30 percent.

It also said directors approved a dividend of 37.5 cents per share, payable June 1 to shareholders as of May 17.

International Shipholding has been mulling its options since January, when privately held Liberty Shipping Group LLC withdrew an offer to buy the Mobile, Ala., company for $25.75 per share, or about $190 million. International Shipholding said Liberty didn’t show evidence of debt financing for a deal.

Shares rose 21 cents to close at $31.50.