Despite the challenges of a three-day workers' strike and the negative impact of Hurricane Fabian on their business, Stevedoring Services Ltd. has posted a slight jump in net profit - close to $750,000 - for its fiscal year to date, although the company did post a loss in September.

In a letter to shareholders, posted through the Bermuda Stock Exchange, Stevedoring president Bruce Lines released information on the company's unaudited financial figures for the first six months of its fiscal year from April 1 through September 30.

In that letter, Mr. Lines said both Hurricane Fabian and the strike - which he stressed had not come about because of any dispute with Stevedoring Services, but stemmed from labour unrest at CableVision - had meant the company incurred unusually high levels of overtime. In addition, the company was hit by the greater costs from empty containers sitting on the docks as ships fled the Island before the storm without re-loading.

Mr. Lines said: “Stevedoring Services Limited felt the effect of Hurricane Fabian as well as the three-day general strike on the net earnings for the six months ended September 30, 2003. The company experienced a combination of factors, the first was empty containers left behind in Bermuda so that vessels could avoid bad weather and also keep schedule, and as revenue is linked to the loading time of these empties, the catch up effect took place in October. The second factor was the vast amount of overtime, which was necessary to keep delivery of containers going for emergency supplies as well as regular freight. The unusually high number of containers on the waterfront, which built up, slowed deliveries. The combined effect of these two events meant that four days had to be made up in overtime at overtime rates.”

Speaking of the general strike by Bermuda Industrial Union (BIU) workers, which was staged less than a fortnight after the Island was battered on September 5 by Hurricane Fabian, Mr. Lines said: “Even though there was a three-day general strike there was never an issue between the company and the Portworkers' Division of the B.I.U. The entire issue was related to another entity (CableVision) and unfortunately the company (Stevedoring) felt the effect. A good working relationship remains between the two parties, dialogue remains frank and honest.”

In the week after the general strike, Mr. Lines put the cost to the company for overtime at $3,500 per day as the company worked longer hours to make up for the time that workers had been off the job.

In total, Mr. Lines said the company had posted a loss in September of $177,312, but he added: “The results for the year to date show a net profit of $739,445 through to the end of September, compared to the same period last year of $690,742.”

The increase in net income was a seven percent gain over the same period last year.

Mr. Lines also reported that the company had seen a rise in the number container loads Stevedoring Services had handled, with an additional 436 over the same period last year.

On the expense side, Mr. Lines reported that Stevedoring was able to trim its general and administrative expenses by10.71 percent while pushing up the rates it charged by an average of 2.5 percent from the beginning of September.

Mr. Lines said Stevedoring continued to spend out on new equipment, with two new customised cranes due to arrive by the end of this year and he said the company was looking at what other “critical equipment” it might buy to “change the way full containers are delivered to the container trucks,” something reportedly suggested in the Corporation of Hamilton's Barberra Report.

Mr. Lines continued: “The less than container load (LCL) cargo continues to be a problem area for the company. It has now grown to the point that at times the sheds have been unable to hold any more of the stripped cargo which has created the impression that (Stevedoring) has not been providing the level of service that the consignees expect. Oversized cargo is also creating space problems. The Corporation of Hamilton insists, where it can, that these items be pre-cleared and leave the dock immediately upon discharge, but here are occasions where this is not possible due to H.M. Customs requirements.”

It was also reported in the company's letter to shareholders that as of the end of September, officers and directors of the company held 61,211 of the 755,650 shares outstanding. There were no rights to subscribe for shares granted or executed by any director or officer.