TransAtlantic loss figures trigger immediate execution on cost reduction plan within Industrial Shipping
TransAtlantic is today releasing their Q1-report 2012 with a negative result that is worse than expected. This is the fourteenth quarter in a row with loss figures and a trend the company now will turn by executing on an ambitious cost reduction plan.
TransAtlantic’s business area Industrial Shipping recently announced an organization review (April 16, 2012) which is now done, followed up by a number of strategic and operational actions that will immediately be taken. Among the initiatives are;
- Consolidation of offices
– expansion of operations in Gothenburg
– reduced offices in Stockholm and Västerås
- Implementation of a stronger sales organization with more focus on customers
- Bunker savings by
– changing purchase routines
– optimizing operation of ships
– optimizing maintenance of our ships
The company will also
- adjust ship capacity to current volumes
- reduce time charter costs on non owned fleet
- reduce crew costs and review crew policy
- This will affect the whole organization, says Kim Sörensen, CEO at Industrial Shipping. We have financially strong majority owners, but it is necessary for us to turn the negative trend and do everything we can to become profitable again.
- We have identified more than SEK 80 M saving this year, which will be complemented by increased sales activities with more time and focus on customers and customer value, continues Kim Sörensen. We have now split Sales from Operations to ensure more focus in each function. The objective is to have a more cost effective organisation and operation while we simultaneously strengthen the part of our organisation who will only think customers and customer value.
- We have excellent competence in the company and I am convinced that our commitment will be one of the key attributes when turning these challenges into opportunities, going for profitability, says Kim Sörensen.
Industrial Shipping has about 450 employees including 130 Swedish seafarers. The fleet comprises 48 vessels and among these, TransAtlantic operates eight dry cargo vessels under Swedish flag.
The initiatives and changes are expected to have full effect from September 1, 2012.
In conjunction with the TransAtlantic Q1-report, a telephone conference will be held today, May 15, at 03.00 pm (GMT +1) where also Kim Sörensen will further present the cost reduction plan. Investors, press and analytics are welcome to join the conference.
Please dial: 0047 2350 0486, code 9969741 (dial in 5-10 mins prior to start)
The telephone conference will be held in English.
Please dial in 5-10 minutes prior to start.
For further information, please contact Head of Corporate Communications,
Carina Dietmann, ph +46 31 763 2334
Rederi AB TransAtlantic is a leading Swedish shipping company with headquarters in Gothenburg, Sweden and additional offices in Europe. The company is organized into two business areas: Industrial Shipping and Viking Supply Ships. The fleet consists of 62 vessels and the company has about 950 employees. The turnover in 2011 was MSEK 2,989. The Industrial Shipping business area consists of five divisions: Bulk, Container, RoRo Baltic, Short Sea Bulk and Integrated Logistics. The company’s B-shares are listed on the NASDAQ OMX Stockholm, Small Cap segment. www.rabt.se
TransAtlantic is obliged to make this information public according to the Financial Markets Act and/or the Financial Instruments Trading Act (Sw: lagen om värdepappersmarknaden and lagen om handel med finansiella instrument). The information was submitted for publication on May 15, 2012 at 08.30 am.