Morgan City, La., headquartered shipbuilder Conrad Industries,Inc (OTC Pink: CNRD) reported earnings of $414,000 for the quarter finished March 31, 2020, contrasted to a bottom line of $307,000 throughout the initial quarter of 2019.
Conrad’s stockpile was $36.6 million at March 31, 2020 contrasted to $79.2 million at December 31, 2019 and also $122.7 million at March 31, 2019.
In an OTC Markets declaring, Conrad connects its enhanced earnings compared to the initial quarter of 2019 as coming mainly as an outcome of a boost in hrs and also tasks in its fixing sector and also enhanced efficiency on tasks in vessel building in the initial quarter of 2020.
“Our results for the first quarter of 2020 and for the year 2019 reflect a continued challenging operating environment, which, later in the first quarter of 2020, was further challenged by the coronavirus (COVID-19) pandemic.” claims the declaring. “In new construction, we continue to experience a soft market for energy transportation projects and projects related to the offshore oil and gas industry, and low demand for large barge project orders; however, prior to the effects of the COVID-19 pandemic later in the first quarter of 2020, increased demand in the petrochemical, construction, and government markets helped offset the adverse impact. The repair market continues to be adversely effected by low crude oil prices and depressed Gulf of Mexico activity, however, prior to the effects of the COVID-19 pandemic later in the first quarter of 2020, increased demand in the construction and government markets helped offset the adverse impact. We continue to experience pricing pressure in both segments, which has intensified due to the pandemic. Some new construction customers continue to request favorable contract terms with smaller up-front and progress payments during construction. These factors negatively impacted our results for 2019 and the first quarter of 2020, continue to negatively impact our results during the second quarter of 2020, and may continue to negatively impact our financial performance throughout 2020.”
The declaring claims that after experiencing a top in steel costs in the 3rd quarter of 2018, steel costs trended downwards throughout 2019. In 2020, costs have actually trended downwards, yet unpredictability exists concerning future steel accessibility and also costs because of the COVID-19 pandemic.
“Uncertainties regarding the pandemic, including its potential length and severity, and the pace of recovery, have caused some customers to delay projects and inquire about modifying or terminating contracts, and have caused us to reduce our workforce hours and consider additional reductions in the workforce hours, personnel and compensation,” claims the declaring. “Our executive officers and board of directors have agreed to salary and fee reductions.”
