Stevedoring Services Ltd.'s profits plunged more than 60 percent in the year up to the end of March 2009 as the volume of goods imported through Hamilton docks slumped.

And company chairman Henry Hayward said in a letter to shareholders, dated last Friday, that container volumes have decreased further in the first half of the current financial year.

Stevedoring faces the added challenge of taking a one-off charge of $3.4 million during the 2010 fiscal year related to the winding down of its employee pension plan.

Mr. Hayward said the downturn "finally came to rest on Bermuda's shore this fiscal year but will not be fully realised until the current year".

The cargo management company said it made net income of $399,578, or 32 cents per share, in the year ended March 31, 2009, compared to $1.08 million, or 87 cents per share, the previous year.

Container moves, which can serve as a very rough measure of economic activity on the Island, fell for a second successive year to 43,642. In the previous year, container moves totalled 44,489 and in the year before that, the figure was 45,048.

The decrease was a major factor in the $1.5 million drop-off in revenue for the company over the past fiscal year to $10.3 million from $11.8 million.

"Although container volume has decreased by approximately two percent over the preceding year, reports indicate that the import volumes have decreased even further in Q1 and Q2 of 2009/2010," Mr. Hayward stated in his letter.

"Other significant factors attributing to lower revenue are due to lower than expected ship arrivals and the loss of stripping revenue."

The chairman's outlook was for more of the same for the current year.

"It is expected that the year ahead will be just as challenging with declining container volumes and lower ship arrivals," Mr. Hayward wrote.

"Management is also faced with addressing the Defined Benefit Plan deficit which is approximately at $3.4 million. The settlement of the Defined Benefit Plan will require the company to take a one-time charge of approximately $3.4 million during the 2010 fiscal year."

The firm closed down the plan in June this year and paid off what was due to those enrolled in it. Consultants had earlier advised Stevedoring that the plan placed a huge financial burden on the company.

In common with many companies who have seen revenues decline during the global downturn, Stevedoring has cut costs. Last year, operating expenses fell by just short of $1 million to $9.98 million. Mr. Hayward said the trend would continue.

"Our focus on reducing cost and gaining efficiency across the company is being executed and is showing positive results," he wrote. "We will continue to aggressively oversee the operations as we steer through these difficult times."

On the longer term future of Stevedoring, Mr. Hayward added: "Although there has been continued talk of moving the port, this has now been overshadowed by a recent Government announcement that they intend to dissolve the Corporation of Hamilton and St. George's.

"This has obvious implications for the company as our licensing agreement is with the Corporation of Hamilton."