Increased profit for SAS Cargo in 2003

Increased profit for SAS Cargo in 2003 Despite difficult market conditions for airfreight in 2003 SAS Cargo managed to continue the positive trend from 2002 by presenting a profit for the second consecutive year. In its second full year as an independent company SAS Cargos profit before interest and tax (EBIT) was 77 million SEK. The turnover was 2,954 million SEK. As expected, the unit revenue per tons kilometer (yield) continued to fall in 2003. The decline was from 2.27 in 2002 to 2.15 in 2003. The main reason was increased overcapacity in the market driving the prices down together with the decreasing USD rates. - Last year was hard for the whole airfreight business. SARS and the war in Iraq affected the market, especially during the first half. Furthermore, the general stagnation in world economy influenced the growth. Despite these factors SAS Cargo succeeded in increasing both revenue and profit, says Vice President and Chief Financial Officer Torben Nielsen. At the same time he mentions a tough and ambitious cost cutting program as one of the significant reasons for the improved result. The cost cutting program, Fitness, started in 2001 where costs of approximately 150 million SEK was identified. During 2003 costs of additional 75 million SEK were identified and the total of 225 million SEKs are expected to be realized before the end of 2004. Torben Nielsen says that SAS Cargo is on the right track, but profit needs to grow even more in relation to the turnover and this will continue to be a focus area for the management team the coming years. - In order to be a strong player in the market SAS Cargo need to be able to present a profit margin (EBIT margin) in the short term of about 5-6 percent and last year's figures show that we are not quite there - yet, says Torben Nielsen. The number of employees in SAS Cargo increased from 1146 to 1258 in 2003. This was primarily due to the acquiring of Novia Cargo in Copenhagen and of Braathens Cargo in Norway. At the end of April 2004, Peter Grønlund stops as President and CEO of SAS Cargo Group A/S. Kenneth Marx who currently is Vice President and head of the Business System division of SAS Cargo will succeed him. For further information: Press Officer Ulrik Marschall, +45 32 32 67 33 or sas.cargo@sas.dk ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/04/29/20040429BIT00790/wkr0001.doc http://www.waymaker.net/bitonline/2004/04/29/20040429BIT00790/wkr0002.pdf