Conrad Industries' Income Jumps After Lawsuit Judgement
Louisiana-based Conrad Industries announced a net income of $7.5 million for the quarter ending September 30, 2024.
This compared to a $3.2 million loss during the third quarter of 2023. The company had net income of $11.2 million for the nine months ended September 30, 2024 compared to net loss of $14.1 million for the nine months ended September 30, 2023.
The increase in net income is primarily due to improved gross profits in the company’s new construction segment and collection of a judgment in a lawsuit. The receipt of the judgment increased Other Income by $8.04 million and net income by approximately $5.8 million.
Conrad filed a suit in 2019 against a customer that defaulted on contracts to construct two vessels. The case involves a breach of contract claim brought by Conrad Shipyard, LLC, against Harley Marine Services (HMS), Harley Franco, Franco Marine 1 and Franco Marine 2. Conrad alleged that it eventually had to sell the vessels to another party at a financial loss.
During the first nine months of 2024, Conrad signed $218.4 million in contracts in its new construction segment compared to $203.7 million added to backlog during the first nine months of 2023. Conrad’s backlog was $282.2 million at September 30, 2024, $253.8 million at December 31, 2023 and $289.7 million at September 30, 2023. Since the end of the third quarter, the company has signed an additional $27.7 million in contracts.
Conrad, established in 1948 and headquartered in Morgan City, Louisiana, designs, builds and overhauls barges, dredges and dredge support equipment, tugboats, ferries, drydocks, liftboats, offshore supply vessels and other steel products for both the commercial and government markets. The company provides both repair and new construction services at its five shipyards located in southern Louisiana and Texas.