D2

By ROSS MAROWITS
The Canadian Press

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MONTREAL - Nervous Davie Yards workers remain hopeful that the company's Norwegian owners will resolve a cash shortfall that once again threatens the Quebec-based ship builder.

"People are very worried, but the morale is good," said Paul-Andre Brulotte, union president of the Syndicat des travailleurs du chantier naval de Lauzon.

Work is continuing at the site near Quebec and the company continues to hire people. There are more than 1,000 people employed at Davie, up substantially from a year ago.

Davie warned last week that the company doesn't have enough cash to meet its requirements after six months.

It took a loss provision of $36.1 million for vessels under construction.

"The ability of the corporation to continue as a going concern is dependent upon raising additional financing and achieving future profitable operations," it said in a statement announcing results for the six months ended June 30.

The company lost US$54.8 million on revenue of US$22.6 million.

The shipbuilder's financial problems come a year after the Canadian industrial giant resurfaced from the brink of liquidation.

Prospects were promising for the company that was built thanks to government largesse. Hundreds of workers returned to the site on the St. Lawrence Seaway last August to build its first major vessel in a decade.

Three 130-metre offshore construction ships estimated to be worth $425 million are to be delivered starting next spring.