Clarkson interims fall but company sees smoother waters ahead

(Sharecast News) - A tough first quarter coupled with a weaker dollar contributed to a fall in interim profits at shipping services company Clarkson.Pre-tax profits fell to £18.0m from £21.9m on revenues of £152.6m, down from £156.8m year on year. The dividend was increased to 24p a share from 23p.Underlying profits fell to £19.2m from £24.5m as Clarkson said it expected results to be in line with its trading outlook in April when it issued a profit warning.The company said conditions picked up in the second quarter and it should "benefit in the second half of the year from these recent improvements and remain confident in the mid to long-term potential for the group"."Although macro-economic and political uncertainties are currently combining to present an unsettled global trading environment, the shipping industry is seeing the return of more positive fundamentals that will ultimately generate increased activity and higher freight rates," said chief executive Andi Case."The dry cargo market has continued the recovery started in the second half of 2017, evidenced by the Baltic Dry Index, which was up on average 24% compared to the first half of 2017.""Weakness in tankers offset some of these gains, with the resultant impact on the ClarkSea Index, which reflects the overall state of earnings in the shipping market, up on average 9% when compared to the first half of last year.""We remain confident in the mid to long-term upside for the markets, and believe that Clarksons is in a unique position to take advantage of those opportunities."