News

11.09.2008

Eimskip reports EUR 20 million loss in Q3

 - Containerships showing strong results -

- Versacold Atlas results continue to be in line with expectations -

- High financing costs greatly impacting results –

- Formal sale process imitated for Versacold Atlas -

Highlights

Revenue in the third quarter amounted to EUR 403.2 million (Q3 2007: EUR 271.9 million), representing a 48.3 increase between years. The underlying growth for the Eimskip group is 4.3% in the quarter. A good result is reported in the company’s operations in Russia and the Baltic region (Containerships). In addition, Versacold Atlas continues to show strong results in line with 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 and revenues from cold stores EUR 242.7 million.

· Expenses in Q3 were EUR 391.4 million (Q3 2007: EUR 260.7 million), representing an increase of 50.1% from last year, along with Versacold’s income in Q1.

· EBITDA was EUR 41.1 million in Q3, 10.2% as a proportion of total revenue.

· Operating expenses totaled EUR 33.2 million in Q3, with EUR 3.1 million due to 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 Atlas Versacold has begun, with the aim being to sell before the end of 2008.

· An agreement was made with two of Innovate’s former owners to return shares in Eimskip, with 55 million shares returned to the company

· Formal sale process for Versacold Atlas formally initiated in partnership with Canadian banks.

Eimskip's President and CEO, Gylfi Sigfusson, 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."

Click here for Q3's presentation and other informational matters