International Shipholding edges into black and predicts better days.

(From Lloyds List)

NEW Orleans company International Shipholding Corp has announced meagre earnings of $220,000 in the third quarter but still a turnround from company losses of $1.6m in the same period of 2003, writes John McLaughlin in New York.

Executives foresaw better days ahead, however, anticipating a double boost from the recently enacted American Jobs Creation Act, in particular the creation of a tonnage tax option for US shipowners and its inclusion of a provision allowing taxes on earnings generated overseas to be deferred until their repatriation.

While still studying the implications, executives said they expected the changes 'to materially reduce our effective tax rate'.

They attributed the quarterly turnround to improved results from an investment in a fleet of cement carriers and two capesize bulkers and the disposal of an unprofitable multi-purpose vessel at the end of last year.

The company's LASH liner services remained largely steady on the same quarter of last year despite higher fuel costs and unanticipated repairs.

These positive factors were partly offset by poorer results due to an eight-month lay-off for repairs from a US ...