Howard Smith News

TITAN Salvage’s Mark Hoddinott Accepts Position as General Manager at ISU. TITAN Salvage's Mark Hoddinott has accepted the position of general manager for the International Salvage Union (ISU). The position will combine the role of secretary general with that of general manager. In this new role, Hoddinott will be responsible to the president of the ISU and its executive committee for the day-to-day running of the ISU and its work on relevant issues. He will start with ISU in April 2012 and will work closely with Secretary General Mike Lacey…

TITAN Salvage appointed Mark Hoddinott to global director, marketing and strategy, responsible for developing, delivering and managing the company's strategic marketing and business development plans. He will operate out of Titan's United Kingdom (UK) facility at Newhaven, East Sussex, and will report to Rich Habib, TITAN's vice president. Hoddinott, who will continue his role on the senior management team, will work closely with TITAN's commercial division. Additionally, TITAN's Neil Ives has been appointed operations manager, Europe. Ives' responsibilities include managing the sales and marketing efforts for the region, pursuing new business, drafting proposals and contracts, supporting the salvage warehouse and operations and overseeing the administrative requirements in the UK office.

TITAN Salvage has appointed Mark Hoddinott to global director, marketing and strategy, responsible for developing, delivering and managing the company's strategic marketing and business development plans. He will operate out of Titan's UK facility at Newhaven, East Sussex, and will report to Rich Habib, TITAN's vice president. Hoddinott, who will continue his role on the senior management team, will work closely with TITAN's commercial division. Additionally, TITAN's Neil Ives has been appointed operations manager, Europe.

Tugboat operator Adsteam Marine Ltd. has completed its purchase of rival Newcastle operator Hunter Towage Services Pty Ltd. Adsteam operates in Newcastle through Waratah Towage, a joint venture with Howard Smith Ltd.

Howard Smith Ltd. said its tugboat division was not for sale, despite market speculation about an impending divestment that boosted its share price. "We do not have a 'For Sale' sign on our tugs at this time," Howard Smith managing director Ian Tsicalas. Tsicalas said the Australian tugboat business was a solid earner, while U.K. towage was a "good steady business without being spectacular". "It's a steady-as-she-goes type of operation with good cash flows and we're happy with that," he said. The sale rumor pushed Howard Smith as much as five percent ahead to an eight-month high of A$9.15, before it eased to close up 32 cents or 3.7 percent at A$9.02, outpacing a stronger overall market.

Hardware and towage group Howard Smith Ltd. pointed to a difficult market for its main hardware and industrial supplies businesses on Tuesday, after posting a flat half year result. Although recent data pointed to a housing recovery, actual spending on hardware was expected to lag housing approvals and a break in economic conditions was not expected until at least mid-year. "The outlook for the next four months is tough," managing director Ian Tsicalas told reporters after the group reported a net profit of A$54.10 million for the six months to December 31, 2000, up slightly on A$53.56 million a year ago. Tsicalas said Howard Smith could still meet earlier forecasts and beat its A$102.9 million 1999/00 full year net profit, saying the first half net profit increase was "sustainable".

Australia's largest marine towage group Adsteam Marine Ltd. has agreed to buy Howard Smith Ltd's Australian and U.K. towage businesses for A$500 million. "The transaction is in line with Adsteam Marine's previously stated objective of using strategic international acquisitions to grow its harbor services operations into a global business," David Ryan, Adsteam's managing director said. The purchase would double Adsteam's earnings before interest, tax, depreciation and amortization (EBITDA) and enhance its earnings per share before goodwill in the first full year of operations. Howard Smith said around A$250 million of the sale proceeds would be used to fund share buybacks both on- and off-market, and the balance would repay debt and fund potential acquisitions.

Howard Smith Ltd.'s likely sale of its Australian and U.K. towage operations to Adsteam Marine Ltd would enable the sluggish company to focus on hardware and industrial supplies distribution, analysts said. The deal was also viewed as a positive for acquisitive Adsteam, already the largest operator of marine towage services in Australia's mature market. Adsteam expanded into the U.S. market in 1999 and would welcome a foothold in the U.K. market. Hardware retailer, industrial supplier and towage operator Howard Smith announced earlier that it was in talks with Adsteam but said no agreement had yet been reached. "We would see it as positive in that it's focusing the business of Howard Smith on the distribution side…

Shares in Adsteam Marine Ltd fell 15 percent on Thursday after it forecast growth in earnings in the year to end-June 2001, but said activity levels in some Australian ports were down in May and June. Consistent with the slowdown in the Australian economy, coal and grain traffic had eased and containerized trade was weaker, but U.S. earnings would boost the bottom line, Adsteam said. "Compared with last year, we now expect EBITDA to increase by approximately 40 percent and EBIT to increase by approximately 25 percent," Adsteam said. "We expect the full year's operational result to reflect the benefit of a full year's contribution from Northland in the U.S. and a small contribution from the recently acquired Howard Smith Towage business," it said.

Australia's biggest marine towage group Adsteam Marine Ltd posted a net profit on Wednesday of $8.6 million for 2000/01, down from $9.6 million a year ago, but said it saw early signs of improved performance. "There are early signs for an improved performance by the group's global operations in the current financial year," managing director David Ryan said in a statement. Adsteam, which recently paid around $268.8 million for Howard Smith Ltd's towage business, said it expected to match market expectations for 2001/02, currently for a pre-abnormal net profit of $18.8 million to $19.3 million. "We put out a warning late in June because we'd seen a softening in the market that was affecting our results…

Tugboat operator Adsteam Marine Ltd. is aiming for improved profits in 1999/2000 after reporting a 1998/99 net profit of $11.1 million. The company achieved a 1997/98 net profit of $10.8 million. Managing director David Ryan said the company was enthusiastic about improved returns from its Newcastle operations, which were expected to return to profit this year. Ryan said earnings before interest, tax and abnormals had grown 5.8 percent in 1998/99 to $18.9 million. Revenue rose to $77.9 million from $70.2 million, with net earnings affected by a 23.2 percent higher tax provision. "The company was targeting further earnings growth in the current financial year - both from traditional operations and from newly acquired assets," he said.

Australian towage operators threatened by foreign competition were at standstill with the Maritime Union of Australia (MUA) last Tuesday as a dispute over tug boat manning levels escalated. "Increasingly we are seeing overseas towage companies tendering for towage contracts in our ports," said Adsteam Marine Ltd. CEO Clay Frederick, noting that comparable offshore ports operated with mostly three man crews. "I don't think our customers are going to cop the fact that we are there with four men, when clearly it has been proven it can be done with three," he said. Adsteam plans to reduce manning levels in a bid to carve A$5 million annually out of its cost base.