Genco Shipping Profit Falls On Lower Rates

NEW YORK (AP) — Third-quarter profit fell 46 percent at Genco Shipping & Trading Ltd., as lower rates for using its ships hurt revenue.

The company said Wednesday that it earned $34.3 million, or $1.09 per share, in the quarter compared with $63 million, or $1.99 per share, a year earlier.

Revenue fell 14 percent to $92.9 million.

The results still topped estimates of analysts surveyed by Thomson Reuters who had expected the company to earn $1.01 per share on sales of $91.4 million.

Genco said average daily rates fell 22 percent, to under $31,000, compared with more than $39,000 a year ago. The New York company said it partly offset that trend by locking up many ships on long-term contracts.

Shares of Genco fell $1.10, or 5.3 percent, to close at $19.67 before the report was released, and slipped nearly 3 percent in late trading.