Page 67: of Maritime Reporter Magazine (March 1983)

Farrell Reports $35-Million

Turnaround — Sells Four

Ships To U.S. Lines

Farrell Lines expects to record a modest net profit for 1982,

Richard V. Parks, president and chief operating officer said re- cently.

This represents a $35-million operating turn-around over the previous year.

Mr. Parks also predicted an operating profit for the 58 year old U.S. flag steamship line in 1983, basing his forecast on the sale recently of four 1,700 TEU containerships to United States

Lines and a brighter outlook in

Farrell's Mediterranean, West

African and chartering divisions.

The four Farrell containerships sold to U.S. Lines have been de- ployed on the North American/

Australian and New Zealand trade route. The sale to U.S.

Lines will result in the suspen- sion of Farrell Line's service to this region.

The total package for the four

Farrell containerships totals ap- proximately $150 million, in- cluding debt, mortgages, and eq- uity capital. "The sale of these vessels will have a favorable impact on our balance sheet expediting the con- tinuing turn-around of Farrell

Lines. It will make Farrell Lines much more viable and stronger,"

Mr. Parks said.

Farrell Lines is suspending its

Australian service mainly be- cause of high operating costs on that trade route and declining cargo volume due to a softening of the region's economy. Farrell

Lines will honor all current car- go commitments between North

America and Australia and New

Zealand with the four voyages in progress.

The company is optimistic about its Mediterranean and

West African trade routes, where it holds a substantial cargo po- sition. It believes it will further expand its market share in that region of the world due to an- ticipated economic growth and

Farrell's position as a U.S.-flag carrier. The Line's charter divi- sion is also projected to do well in 1983.

Mr. Parks joined Farrell Lines in 1979 and was appointed presi- dent and chief operating officer in 1981. The company subse- quently has reorganized its top management staff, instituting tight financial controls, trimming inefficiencies, emphasizing qual- ity service and innovative ap- proaches to customer needs.

The four vessels involved in the sale to U.S. Lines are the

Austral Pioneer, Austral Puritan,

Austral Envoy, and the Austral

Entente.

Selesmar Of Italy

Increases Capital Through

Agreement With INI

Selesmar of Florence, Italy has announced the signing of an agreement with INI of Spain, in which INI has acquired 20 per- cent of the share capital of

Selesmar. A leading manufactur- er of marine radars and ARPA anti-collision systems, Selesmar had previously been fully con- trolled by S.M.A. With the agree- ment the share capital of Seles- mar has been increased from 2 billion lire to 2.5 billion lire. This is the second increase of capital since Selesmar was formed in

August of 1980 and is indicative of the rapid and constant growth experienced by this firm since its inception.

Participation on the part of the new Spanish stockholder is considered particularly important because of a technical and com- mercial agreement with the lead- ing Spanish electronics equip- ment manufacturer EISA which is controlled by INI.

Selesmar reports its products have gained excellent acceptance through 1982 in the international marine market, and that sales had exceeded anticipated levels for the year.

For complete information and literature on Selesmar's radars and ARPA anti-collision systems,

Write 35 on Reader Service Card

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