- Revenue increases 48.3% for the quarter
- Transportation business showing strong results
- Formal sale process initiated for Versacold Atlas
Highlights:
Eimskip today reported revenue in the third quarter of EUR 403.2 million (Q3
2007: EUR 271.9 million), representing a 48.3% year-over-year increase. The
underlying growth for the Eimskip group was 4.3% in the quarter. Strong results
were reported in the transportation business. Additionally, Versacold Atlas
continues to show strong results in-line with the company's expectations.
Eimskip's operations are divided into two main fields; logistics services (sea
freight and related transport) and operations in cold stores. The Q3 financial
highlights are:
• Revenue from logistics services in Q3 amounted to EUR 160.5 million. Revenue
from cold stores was EUR 242.7 million.
• Expenses for the Eimskip group in Q3 were EUR 391.4 million (Q3 2007: EUR
260.7 million), representing an increase of 50.1%.
• EBITDA for the group was EUR 41.1 million in Q3, equaling 10.2% of total
revenue compared to last year's group EBITDA of EUR 27.0 million, which
represented 9.9% of total revenue.
• Financial expenses for the group totaled EUR 33.2 million in Q3, including a
EUR 3.1 million currency exchange loss.
• Loss after taxes was EUR 19.9 million in Q3, compared to a gain of EUR 14.1
million in Q3 2007.
• The formal sale process of Versacold Atlas has begun in partnership with
Canadian banks.
• An agreement was reached with two of Innovate's former owners to return
shares in Eimskip, with a total 55 million shares returned to the company.
Eimskip‘s President & CEO, Gylfi Sigfússon, commented:
"Eimskip‘s transportation business continues to show results in line with our
expectations. However, financial items and higher interest expense continue to
have a significant negative effect in Eimskip‘s bottom line. We are diligently
working towards our stated goal of lowering our debt levels. In addition,
several internal restructuring and cost cutting initiatives are being
undertaken in response to an anticipated downturn in the transportation
business driven by a weakening macroeconomic landscape.
Eimskip's key focus will be on streamlining our organization and the goal of
bringing our equity ratio to 25%. To that end, a formal sale process of
Versacold Atlas has begun in cooperation with our engaged Canadian banks."
