Net revenue: SEK 585 M (623)
Operating profit before tax: SEK 74 M (68)
Profit before tax: SEK 79 M (66)
Profit after current tax: SEK 79 M (65)
Profit after full tax: SEK 74 M (63)
On March 31, 2008 shareholders' equity per share amounted to SEK 45.30 per share (SEK 43.60 per share on December 31, 2007)
The equity/assets ratio on the closing date was 41% (39% on December 31, 2007)
Return on equity 24 % (22%)
Return on capital employed 16% (15%)

 

*Operating profit: earnings before tax and restructuring costs

Transatlantic's operations, goals and strategy

Transatlantic consists of the Offshore/Icebreaking business area and the Industrial Shipping business area, which comprises two divisions - Atlantic and European. The operations of the Offshore/Icebreaking business area are based on combination vessels on long-term contracts and guaranteed income for icebreaking, in addition to other deployment, mainly for rig-relocation in the offshore market. Atlantic- and European divisions focus on contract shipping, primarily for the forest products and steel industries.

 

Transatlantic's business concept is to market, develop and deliver the market's most efficient transport solutions in close and active cooperation with customers.

 

Transatlantic's goal is to be the market leader in its segments, with profitability that generates a favorable return for shareholders. The goal is a return of at least 12% on shareholders' equity and an equity/assets ratio that does not fall below 30%.

 

The Group's strategy for the next few years emphasizes growth and sustainable profitability. Growth will be achieved organically and through acquisition. The Group is also very open to the development of various partnerships aimed at broadening operations or implementing various investments and projects.

 

The ambitions for growth will require investments in new tonnage and replacement tonnage. These include all divisions and will be conducted without jeopardizing the Group's financial targets. This also means that the Group's tonnage requirements will be partly resolved through charter contracts and by external investors becoming wholly or partly involved in the fleet operated by the Group.

 

The strategy for and development of the Group places major demands on quality, safety and the environment, as well as awareness of customer demands and a willingness to change.

General developments during the first quarter

During the first quarter of 2008, continued favorable shipping trends were reported despite the worries in the financial markets. Capacity utilization was generally satisfactory and price structures were somewhat better than the year-earlier period.
With the Transatlantic segment, demand and deployment were favorable in the Offshore/Icebreaking business area, while the situation was somewhat varied in the Industrial Shipping business area, mainly due to the continued weakening of the US dollar.

 

The Offshore/Icebreaking business area noted continued strong demand for tonnage with freight levels in line with the strong earnings during the year-earlier period. The business area's operating profit was SEK 58 M (64).

 

The Industrial Shipping business area improved its operating profit, which amounted to SEK 21 M (11) for the quarter.
Volumes for westbound Transatlantic Services were lower and one vessel experienced a serious grounding, creating an imbalance in service. The division's operating profit amounted to a loss of SEK 2 M (loss: 3).
The European Services division reported higher earnings from the TransLumi Line due to increased third-party shipments, and earnings improved compared with the year-earlier period. The division's operating profit was SEK 23 M (14).
Consolidated earnings for the first quarter of 2008

 

The Group's net revenues amounted to SEK 585 M (623). The change in sales was due mainly to lower revenues from transatlantic traffic, as well as the currency effects of a lower US dollar, the disposal of certain external vessel management tasks and the sale and leaseback of one vessel.

 

The Group's operating profit was SEK 74 M (68) and profit before tax amounted to SEK 79 M (66). Earnings include positive restructuring costs of SEK 5 M, mainly attributable to the sale of the M/S Holmön.

 

(For full report see attached file.)