Some of the items on the agenda of the Annual Meeting of
Shareholders of DFDS A/S to be held today are as
follows.
Outlook for 2000
In the 1999 annual accounts of the DFDS Group, it was
announced that, subject to developments in oil prices, the
overall operating result before financing, etc. (EBIT) was
expected to be approximately 15% higher than in 1999, and a
similar projection was made for the result before tax and
extraordinary items.
At division level, we still expect DFDS Dan Transport to
achieve an operating result before financing, etc. (EBIT)
somewhat higher than that for 1999. The forecast assumes
improved results for forwarding activities in the UK.
Economic development for DFDS Seaways has matched
expectations and we therefore anticipate a somewhat better
operating result before financing, etc. (EBIT) than in
1999.
DFDS Tor Line opened the year with a result below the
level of our expectations. Intensifying price competition
on ro/ro services coupled with high oil prices led to
general earnings below the forecast level. Contrary to
expectation, the negative trend noted in NorBridge in the
last quarter of 1999 has continued into 2000, and the
budgeted profit improvement is therefore smaller than
anticipated. This activity is now expected to record a loss
in the region of DKK 80 million. For 2000 we expect an
operating result before financing etc. (EBIT) that is
significantly lower than in 1999.
The unsatisfactory profit development in DFDS Tor Line
will affect the Group’s profit forecast for this year. The
operating result before financing, etc. (EBIT) for the
Group as a whole is now expected to be on a par with 1999,
while the result before tax and extraordinary items about
10% below that of 1999 must be anticipated.
Long-term financial goals
As previously announced, in the course of the first
six months of 2000, DFDS will present its financial goals
for both DFDS and the individual divisions, expressed as
return on invested capital and operating profit margins,
respectively.
The following financial goals have been set and are
expected to be realized in the period 2003-2005:
Return on invested capital (after tax) 8,25
Profit margins:
DFDS Group: 4,50
DFDS Dan Transport: 2,75
DFDS Tor Line: 10,00
DFDS Seaways: 8,0
The model for the financial goals is under preparation
in the DFDS Group’s reporting system. The process of
embedding the goals in the individual Group divisions is
likely to extend over a period of 18 to 24 months.
Progress on the financial goals will be monitored on an
ongoing basis.
Yours sincerely,
DFDS A/S
Board of Directors / Executive Board