STRONG 2010 FOR DFDS
The results for 2010 and expectations for 2011 show that the acquisition of Norfolkline created value
With turnover reaching almost 10 billion kroner and an operating profit of 1.3 bil-lion kroner we have come through 2010 very well, says Niels Smedegaard, President and CEO of the DFDS Group, northern Europe's largest combined shipping and logistics company.
The integration of Norfolkline is progressing faster and better than expected. The results for 2010 and expectations for 2011 show that the acquisition clearly created value. At the end of this year we expect that the synergies will reach about 180 million kroner on an annual basis. We have also created value for our shareholders by selling or closing loss-making routes, Niels Smedegaard says.
Operating profit (EBITDA) was DKK 1,273m before special items, an increase of DKK 469m from 2009. The increase reflects the improvement in market conditions, the acquisition of Norfolkline from July 2010 and the extensive work done over the last couple of years to adapt operations and make them more effective. Profit before tax but after special items was DKK 547m, compared to DKK 20m in 2009.
For 2011 operating profit (EBITDA) before special items is expected to increase further to around DKK 1.5bn and profit before tax and special items is expected to increase to around DKK 550m (DKK 445m). Expectations are based on an as-sumption of generally rising demand in northern Europe. On the freight market growth is expected to be highest in the Baltic Sea area and lower in the North Sea. On the passenger market growth is expected to be moderate and likewise with higher growth in the Baltic Sea area than in other market areas.