Todd Shipyards Has Loss in 3rd Quarter

Todd Shipyards reported an after-tax loss of $2.9 million in its third quarter, bringing the net loss for the first nine months of its fiscal year to $4.2 million.

The New York-based shipyard linked the loss to provisions it made to cover costs associated with its dispute with the Navy over workers’ compensation insurance premiums. The seven-month strike at its New Orleans division and a one-time provision for the intended divestiture of that shipyard also contributed to the poor financial performance. At the end of last year, Todd idled the New Orleans division and announced plans to sell it after seven months of negotiations failed to yield a new labor contract.

Besides the New Orleans division, Todd, one of the nation’s leading ship construction and repair companies, operates shipyards in Galveston, Tex., Los Angeles, San Francisco and Seattle.

Todd said it expects to have a profit in the fourth quarter, but the gain won’t be enough to offset the loss reported for the first nine months.

Revenue in the third quarter ended Dec. 31 amounted to $91.7 million, down from $110.2 million in the same period last year, when after-tax earnings came to $4.5 million.

For the first nine months of Todd’s fiscal year, the company lost $4.2 million on revenue of $290.4 million, compared to earnings of $13.4 million on revenue of $394.6 million.

For detailed data and results of other companies, please see tables, Page 6.