Company Announcement
Announcement no. 06/2009
Copenhagen, 9 March 2009
Annual report 2008
DFDS prepared for very challenging 2009
Adjustment of costs to difficult market conditions initiated already before the
summer of 2008
In 2008 DFDS achieved revenue of DKK 8.2 billion and an operating profit
(EBITDA) of DKK 1.0 billion. Pre-tax profit for the year was DKK 221 million.
“Our entire sea-based transport network was impacted by declining volumes in the
second half of 2008,” says CEO Niels Smedegaard. “Especially in the fourth
quarter, both in the North Sea and the Baltic Sea. When we take the
deteriorating and volatile market conditions into account - as well as one-off
costs due to many adjustments - we are satisfied with an operating profit of a
billion kroner,” adds Niels Smedegaard.
Early adaptation of activities
After the first six months of 2008 it was clear that a general fall in demand
was in sight. Therefore a number of adjustments were initiated to reduce costs:
- Return and chartering out of ships to reduce the capacity of the route
network
- Fewer departures and optimisation of bunker consumption to reduce fleet's
operating costs
- Route closures
- Renegotiation of collective agreements and more flexible crewing principles
- General adaptation of the organisation to a lower level of activity.
“We started adapting to the market early on and are continuing to do so. So we
are well prepared for 2009, which will be a very challenging year,” says Niels
Smedegaard. “We are also highly aware of maintaining a clear focus on serving
passengers and freight customers efficiently and competitively.”
Strong capital base and financial resources
DFDS' equity ratio was increased to 40% in 2008 due to a free cash flow of over
DKK 600 million. In February 2009 the funding was assured for the planned
investments in the continuing modernisation of the fleet.
Expectations for the future
On the basis of the current market environment with a downturn in freight
volumes of around 25%, the forecast for 2009 is an operating profit (EBITDA)
that is around 20% lower compared to 2008. The forecast is subject to
significant uncertainty.
“Our profit level is naturally affected by the difficult market conditions. But
when the winds change and fill our sails once again, DFDS is well positioned to
gain market share through our customer focus, stable operations, financial
strength and streamlined organisation,” says Niels Smedegaard.
The annual general meeting will be held on 1 April 2009.
For further information contact Niels Smedegaard, CEO, direct telephone +45
3342 3400.
Group CEO Niels Smedegaard and CFO Christian Merrild will present the report to
a live audio conference 9 March 15:00 CET. The conference will be broadcast live
on: www.dfds.com
and published for future reference.
The full Annual report is attached.
DFDS - a leading sea-based transport network in Northern Europe. DFDS has around
4,300 employees and employs a fleet of around 60 ships. DFDS was founded in 1866
and is listed on OMX, the Nordic Stock Exchange Copenhagen.
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