Erik Hvide News

On June 2, J. Erik Hvide, chairman and CEO of Hvide Marine has decided to step down from his position effective immediately. Hvide's decision, formally stated at Hvide Marine's Board of Directors meeting was furthered by two factors - Mr. Hvide's own personal reasons and the company's declining profits. Hvide, who has been with the company that bears his name for the past 29 years, took the small-family-owned operation started by his father, Hans J. Hvide in 1958, to a leading international provider of marine support and transportation services. The former head executive was a key player in crossing Hvide Marine over to a publicly-traded company in 1996, as well as skyrocketing the company's profits from $40 million to $400 million over the past five years.

In the latest of various corporate changes that have occurred at Fort Lauderdale, Fla.-based Hvide Marine, the company has elected Gerhard E. Kurz as CEO and a member of its Board of Directors. He replaces James J. Gaffney, who had been serving as interim chairman and will now hold the position of non-executive chairman of the board. Jean Fitzgerald, who managed to bring Hvide to new levels by taking the fledgling company out of Chapter 11 bankruptcy, took on Hvide's reins as chairman and CEO following the resignation of longtime CEO, Erik Hvide last year. Fitzgerald, who recently underwent successful heart surgery, will continue to serve Hvide as a consultant and member of its Board.

While Z-Drive can still be considered a "revolutionary" design trait of today's tugboats, engineers aren't resting on their laurels. New technical standards being introduced are testimony to designers' creativity and imagination; and the functionality is improved, as well. The use of tugs with either Z-drive or VSP propulsion have led to much faster, safer and more efficient ship-assist operations, without fail, says Robert Allan, of the marine engineering firm, Robert Allan Ltd. In fact, he adds, some tug companies with Z-drive tugs have had insurance premiums lowered because of the reduced risk of them damaging an attended ship with better tugs. But in no way have tugs evolved to their highest achievable level. The birth of such innovative designs was not unexpected, says Allan.

Halter Marine, Inc. has begun construction of three second generation Ship Docking Modules (SDM) at its Lockport, La. shipyard for Hvide Marine, Inc. The new tugs, designated SDM Mark II, follow the three original Halter-built SDMs, New River, St. Johns and Escambia. Two of the new vessels, Suwanee River and Peace River, are scheduled for delivery in 1999, and Kissimmee River, the third Mark II, will be delivered in 2000. The patented, double-ended 90 x 50 ft. SDM design, which requires only two crew members to operate, was conceived by Erik Hvide, chairman and president of Hvide Marine and refined by the Elliot Bay Design Group, Seattle, Wash. The design is critical to maneuvering large ships in and out of narrow ports and harbors.

Hvide Marine Inc. reported net income in the fourth Quarter ended December 31, 1998 totaled $1.9 million, compared with $9.8 million in the year-earlier period. Revenues for the quarter grew to $105.9 million from $67.4 million a year ago, as a result of increases in fleet size. For the full year, income before an extraordinary item totaled $22.5 million versus $27.6 million before an extraordinary item in 1997. After a loss related to the early extinguishment of debt, net income in 1998 was $21.7 million compared with $25.5 million in 1997. Revenues of $401.9 million in 1998 were up from $210.9 million in 1997, reflecting the growth in the company's fleet from 220 vessels to 282 vessels.

Halter Marine, Inc. has begun construction of three second generation Ship Docking Modules (SDM) at its Lockport, La. shipyard for Hvide Marine, Inc. The new tugs, designated SDM Mark II, follow the three original Halter-built SDMs, New River, St. Johns and Escambia. Two of the new vessels, Suwanee River and Peace River, are scheduled for delivery in 1999, and Kissimmee River, the third Mark II, will be delivered in 2000. The patented, double-ended 90 x 50 ft. SDM design, which requires only two crew members to operate, was conceived by Erik Hvide, chairman and president of Hvide Marine and refined by the Elliot Bay Design Group, Seattle, Wash. The design is critical to maneuvering large ships in and out of narrow ports and harbors.

J. Erik Hvide Steps Down Hvide Marine named Jean Fitzgerald chairman, president and chief executive officer, replacing J. Erik Hvide, who resigned for personal reasons. Hvide will remain a member of the board of directors, the company said. Fitzgerald, 73, has been a director of the company since 1994. He will take up his position immediately, it said. Hvide, 50, steps down from active duty after 29 years of service with the company, which was founded by his father, Hans Hvide, in 1958.