ANNOUNCEMENT NO. 10 - 2009
17 June 2009
TORM re-organizes global set-up as part of ongoing efficiency programme
In the 2008 annual report, TORM announced the launch of a comprehensive
efficiency programme - Greater Efficiency Power - in order to take full
advantage of the global reach the Company has gained from the recent years'
acquisitions and strong growth. When fully implemented in 2010, the programme
is expected to contribute with annual cost savings of USD 40-60 million.
As part of the programme, TORM has re-organized its global set-up of crew and
fleet management to better support commercial requirements and to align with
TORM's overall strategy. Likewise, support functions will be further
centralized to achieve synergies and better utilize the global IT platform.
Further standardization of maintenance as well as crew optimization will not
only secure reductions in operating expenses, but also improve efficiency and
enhance the quality of TORM's service to the benefit of the customers.
As a result of the rollout of Greater Efficiency Power, 35 land-based employees
throughout the organization will be made redundant over the coming months,
corresponding to approximately 10 percent of all onshore staff.
“A plan like Greater Efficiency Power is a logical and necessary consequence of
the strong growth TORM has experienced in the past five years and has been
planned prior to the economic slowdown. This is also meant to create the
foundation for TORM's future growth,” CEO Mikael Skov says.
The net effect of the above will have no influence on TORM's 2009 pre-tax
profit forecast of USD 100-140 million incl. sale of vessels as stated on 9
June 2009 (announcement no. 9/2009).
Kontakt:
Mikael Skov, CEO, tel.: +45 39 17 92 00
Roland M. Andersen, CFO, tel.: +45 39 17 92 00
About TORM
TORM is one of the world's leading carriers of refined oil products as well as
being a significant participant in the dry bulk market. The Company operates a
combined fleet of more than 130 modern vessels, principally through a pooling
cooperation with other respected shipping companies who share TORM's commitment
to safety, environmental responsibility and customer service.
TORM was founded in 1889. The Company conducts business worldwide and is
headquartered in Copenhagen, Denmark. TORM's shares are listed on the
Copenhagen Stock Exchange (ticker TORM) as well as on the NASDAQ (ticker TRMD).
For further information, please visit www.torm.com.
Safe Harbor
Forward Looking
Statements
Matters discussed in this release may constitute forward-looking statements.
Forward-looking statements reflect our current views with respect to future
events and financial performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than statements of historical
facts. The forward-looking statements in this release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, Management's examination of historical operating
trends, data contained in our records and other data available from third
parties. Although TORM believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, TORM cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward looking statements include the
strength of world economies and currencies, changes in charter hire rates and
vessel values, changes in demand for “tonne miles” of oil carried by oil
tankers, the effect of changes in OPEC's petroleum production levels and
worldwide oil consumption and storage, changes in demand that may affect
attitudes of time charterers to scheduled and unscheduled dry-docking, changes
in TORM's operating expenses, including bunker prices, dry-docking and
insurance costs, changes in governmental rules and regulations including
requirements for double hull tankers or actions taken by regulatory
authorities, potential liability from pending or future litigation, domestic
and international political conditions, potential disruption of shipping routes
due to accidents and political events or acts by terrorists. Risks and
uncertainties are further described in reports filed by TORM with the US
Securities and Exchange Commission, including the TORM Annual Report on Form
20-F and its reports on Form 6-K.
Forward looking statements are based on management's current evaluation, and
TORM is only under obligation to update and change the listed expectations to
the extent required by law.
