Algoma Central suffered a 47% drop in earnings in a quarter that brought the twin blows of lower salt volume and reduced construction activity.
The Toronto-listed bulker and tanker owner reported net earnings of CAD 17.5m ($12.6m) during the second quarter, down from CAD 33.1m a year earlier.
The profit plunge came on the back of an 11% drop in revenue to CAD 181m.
Driving the drop was an 18% drop in domestic dry bulk revenue, which reached CAD 104m.
Chief executive Gregg Ruhl said the segment faced lower salt volume as a result of mild winters.
It also took a hit from reduced demand for construction materials.
“Algoma encountered a challenging second quarter, but there are encouraging indications that volumes and margins will improve in the second half of the year,” he said in the earnings report.
“Looking ahead, we see potential for a large grain crop in 2024, and domestic iron ore volumes are expected to increase, leading to the deployment of three additional vessels that are currently in temporary lay-up.”
Despite the tough market for the company’s domestic fleet, the picture was brighter elsewhere in its business.
“Our international fleets, including our ocean self-unloaders, have been performing well with rates holding steady,” Ruhl said.
The product tankers brought an increase in revenue to CAD 33.6m, up 20% from CAD 28m a year earlier.
Ocean self-unloaders segment revenue slumped 9% to CAD 42.8m.
The second-quarter result contributed to a plunge in first-half profit to CAD 211,000, down from CAD 13.5m in the same period of 2023.
