The Chilean liner carrier CSAV said it had an operating profit of $37.3 million in the third quarter, its first positive quarterly result in nearly two years.
The line suffered an operating loss of $354.9 million in the third quarter of 2011, highlighting the huge positive swing in financial performance.
For the year, CSAV is still in the red, with a $244.6 million operating loss through three quarters, but that loss is a 74.2 percent reduction year-on-year. Revenue has fallen 30.5 percent as CSAV significantly retrenched its service network and capacity in the last year.
CSAV Chief Executive Oscar Hasbún said he was satisfied with the results, pinning the improvement on the operational, financial and corporate restructuring introduced by the company during 2011, as well as an improvements in freight rates.
“We are satisfied with the work done,” he said. “Thanks to the support of our shareholders, we have been able to carry out a deep change in our business model and today our efforts are being reflected in our results following a long period of losses.”
CSAV’s operational restructuring included a massive increase in joint operations, from 30 percent of its network capacity to 95 percent at present, and an increase in its own fleet, from 8 percent at the end of 2010 to 37 percent in the second half of this year.
“The market and freight rates are still unstable, as well as the oil price,so the company is continuing to work to improve its operating efficiency through several initiatives as part of the work being done with the consultants McKinsey,” Hasbún said. “However, we believe that the result for this quarter reflects the impact of the deep restructuring implemented and shows that we have a sustainable long-term business model.” - Eric Johnson