ATLANTIC CONTAINER LINE REPORTS 300% INCREASE IN JANUARY-SEPTEMBER PROFIT
Sweden’s Atlantic Container Line reported a 300-percent increase in net profit for the first three quarters, to 140 million Swedish Krona ($15 million).
The result compares with a nine-month net profit of SKr35 million for the same period in 1999. Return on capital employed was 19.2 percent for the first nine months of this year, up from 9.2 percent for the same period in 1999.
Operating revenue for the nine-month period rose to SKr2.1 billion ($225 million), from SKr1.6 billion in the corresponding period of last year.
ACL reported a net profit of SKr43 million ($5 million) for the third quarter, up from SKr5 million in the year-earlier quarter.
Operating profit before interest in the latest quarter soared to SKr77 million ($8 million), from SKr17 million in the third quarter of 1999.
Operating revenue increased by 27 percent, to SKr683 million ($73 million) in the latest quarter, from SKr534 million in the year-earlier period.
The third quarter included the planned drydocking of all five of the line’s container/roll-on/roll-off vessels. ACL ‘s net profit for this period also included a one-time pension fund repayment of SKr24 million ($3 million).
ACL stated that the fourth quarter is expected to be the best quarter of this year.
The line also said that while westbound ro-ro and car rates have been stable, container rates continue gradually to increase. Westbound volumes have been strong in the container and ro-ro segments, with car volumes lower than in 1999.
Eastbound rates are reported stable in all three segments, with car volumes falling significantly due to reduced demand for U.S.-built cars in Europe. Ro-ro volumes easbound have improved over last year, while ACL’s eastbound container segment is well ahead due to improved market share, the line stated.
Vessel utilization has also significantly improved, the carrier said.