Grindrod posts earnings growth

Terry Hutson THREE YEARS of significant earnings growth is the impressive news from shipping line and logistics company Grindrod, with the announcement of the 2002 financial year-end figures last week. “The group produced these positive results despite difficult trading conditions for some of the divisions,” said Group MD Ivan Clark. Grindrod posted a 30% increase in earnings to R165.4 million from a turnover of R2.2Bn, an increase of 23%. “We took advantage of the low markets in 2002 to increase our owned and chartered fleet,” he said. The loss-making Quadrant Container Line was closed but with full provision made for discontinuation costs. Unicorn Shipping completed its planned dry cargo fleet replacement programme and placed orders for three new building products tankers. Island View Shipping (IVS) increased its chartered fleet during the year and developed a world-wide modern handysized pool in partnership with Lauritzen Bulkers as well as expanding its participation in the Capesize and Panamax markets. “This positions IVS to take advantage of improved shipping markets during 2003,” says Clark. The group also entered into a joint venture between Unicorn Lines and Safmarine where it is trading as an African coastal service under the name Unifeeder. The group’s freight management division grew substantially and is now a major contributor to the group’s profitability, with further growth in 2003 anticipated, he said.