ACL REPORTS 73% FALL IN ANNUAL NET PROFIT
Atlantic Container Line, the transatlantic shipping line, reported a 73-percent fall in its net profit for 1999, to 67 million Swedish Krona ($8 million), caused by a 20-percent decrease in its transatlantic container freight rates.
The 1999 net profit compared with net earnings of SKr244 million in 1998.
Operating revenue was SKr2.2 billion ($264 million) last year, 9 percent lower than the SKr2.4 billion revenue figure in 1998.
Operating income (earnings before interest) last year dropped to SKr149 million ($18 million), from SKr405 million in 1998.
ACL said that the decline in its financial results can be attributed to the erosion of container freight rates last year.
“As a result of the combination of market uncertainty brought about by shipping deregulation and the increased capacity of new competition, container rates fell drastically during the first half of 1999,” a spokesman for ACL said.
Roll-on/roll-off freight rates and rates for the carriage of cars remained stable last year, the Swedish carrier said.
ACL said that it has been able to soften the impact of low container freight rates — the lowest in the company’s 32-year history — by reducing costs.
The transatlantic carrier predicted that container freight rates will increase this year, although not back to the 1998 levels.
ACL expects its overall result for 2000 to be “considerably improved” compared to 1999.
The lower profit results of ACL follow the announcement of a sharp fall in profits for 1999 at CP Ships, the parent company of transatlantic carriers Lykes Lines, Canada Maritime and Cast.
Information on the 1999 financial results of ACL and other shipping lines are posted on www.compairdata.com, the global shipping information database on the Internet.