FINANCIAL ITEMS BRING EIMSKIP BACK IN PROFIT IN 2002

FINANCIAL ITEMS BRING EIMSKIP BACK IN PROFIT IN 2002    Eimskip Holding, the parent company of Icelandic niche carrier Eimskip, reported a net profit of ISK4.5 billion ($55 million) for 2002, as compared to a net deficit of ISK3.2 billion the previous year, thanks to favorable financial items and one-off adjustments.
   The improved net profit for 2002 was largely due to exchange rate gains on financial liabilities because of the strengthening of the Icelandic currency, and unrealized gains due to higher prices of listed shares owned by the group, Eimskip Holding said.
   The group results also include, for the first time, profits from fisheries activities that were acquired during 2002. The fisheries business contributed a small net profit of ISK209 million ($3 million) in 2002.
   Group operating revenue for 2002 was ISK24.4 billion ($298 million), an increase of 32 percent over the previous year’s revenue of ISK18.4 billion.
   Before financial and exceptional items, the Icelandic company’s results deteriorated last year. The group made a loss before interest and tax of ISK96 million ($1 million), as compared to a profit of ISK98 million in 2001.
   The transportation arm of the group made a net profit of ISK1.3 billion ($15 million) in 2002, with earnings before interests and tax of ISK122 million ($2 million) and operating revenue of ISK17.3 billion ($213 million).
   Eimskip Holding said that its transportation revenues “fell considerably short of expectations in December.”
   Transportation produced a loss of ISK89 million ($1 million) in the fourth quarter.
   In Eimskip’s transport operations, cost-cutting action in recent years “has delivered results,” the Icelandic group said. “It is hoped that imports will recover during the year following a period of contraction,” it added.
   Eimskip Holding predicted that it would make a profit this year. “Profit before tax will be somewhat lower than in 2002 due to lower exchange rate gains on foreign liabilities and unrealized profit on equities, but at the same time earnings before interests and tax is expected to improve,” it said.
   The company will propose the payment to shareholders of a 9-percent dividend on the nominal value of shares in 2002.