In 2013, the company reported $34.3m profit during the second quarter, which included a one-time $74m positive impact, mainly explained by the pre-payment by the company of the debt maintained with the American Family Life Assurance Company (AFLAC) and because of the reorganisation of its Brazilian subsidiaries.
The second quarter of 2014 results are mainly due to the complex scenario that the shipping industry continues facing, with low rates as compared to the first quarter of the year and particularly compared to the second quarter of 2013. In fact, according to the container rate index published by CSAV, during the second quarter of 2014 freight rates decreased by 9.9% compared to the same period of the previous year.
Another factor that affected negatively the quarter’s results was the $18.6m loss registered by the company when it sold its interest in the joint-venture with DryLog in the dry bulk business.
CSAV obtained further improvement in its unit operating costs, which are an essential element in the business model driven by the company, as it has occurred during the last quarters. As a result, the increase in transported volume –which rose by 13.5% compared to the first quarter of 2014 and 7.9% compared to the second quarter of 2013– was greater than the increase in shipping costs during both comparative periods.
"The industry continues facing a very complex and unstable freight rate scenario. In spite of the above, CSAV continues showing a significant improvement in its cost structure, which is in line with the strategy of the Company’s new operational model,” said CSAV ceo Oscar Hasbun.
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