ASPO REVISES ITS EARNINGS FORECAST FOR 2006
2006-07-12T11:01:24 CETASPO Plc STOCK EXCHANGE BULLETIN July 12, 2006 at 12:00 a.m.
Aspo's comparable operating profit for the January to June period fell short of last year's corresponding performance. According to current estimates, the Group is unlikely to exceed its 2005 operating earnings this year. However, the Group's net sales are expected to continue growing as forecasted.
Key factors in the re-evaluation of the Group's financial performance are the Shipping and Systems Divisions. In the shipping business, the sharp rise in bunker costs has continued. Contract-based fees for higher fuel prices are paid in arrears and will not compensate for the increased costs in full. There have been interruptions in the availability of raw materials (such as coal and iron ore), which have led to longer waiting times in port. In addition, this year dry docking costs have had a greater impact on the financial performance in the first half of the year. While the Systems Division failed to meet its targets in the first half of the year, the order book is growing steadily.
In 2006 Aspo adjusted its tangible asset accounting principles (IAS 16) regarding dry docking costs. Comparative data for 2005 has been adjusted accordingly. The Aspo Group's operating profit in 2005 amounted to EUR 16.2 million. Following the changes in the cost recognition method, the comparable operating profit for 2005 rose by EUR 1.1 million to EUR 17.3 million. This should have no significant impact on Aspo's performance in 2006.
Aspo will publish its Q2 interim report on Thursday, August 24, 2006.
Helsinki, July 12, 2006
ASPO Plc
Gustav Nyberg
CEO
Further information:
Mr. Gustav Nyberg, tel. +358 40 503 6420
gustav.nyberg@aspo.fi
Aspo Group focuses on logistical services for industry. Aspo serves businesses in the energy and industrial process sectors requiring strong specialist and logistical know-how. Aspo's net sales in 2005 totaled EUR 204.9 million. About 36% of this came from Aspo Chemicals, 39% from Aspo Shipping and 25% from Aspo Systems.