EAC Interim Maintains Outlook despite Adverse Currency Effect

Nov 5, 2009 - EAC has released the financial report for Q3 2009.

• Consolidated revevenue increased by 21 per cent to DKK 4.5bn during the first nine months of 2009
• Operating profit (EBIT) amounted to DKK 450m - i.e. on par with 2008
• Unchanged revenue and EBIT outlook at DKK 6.5bn and DKK 600m respectively.

Continued high growth in EAC Foods

• Growth driven by high demand and price increases
• Improved allocation of USD at official exchange rate, but still no news about dividend payment
• New labour agreements increase costs.

Outlook:

• Christmas sales proceed as planned
• Upgrade of operating margin to 12 per cent (11 per cent).

Optimism in Asia increases demand in EAC Industrial Ingredients

• Continued increasing demand as the economies in Asia pick up, but low prices and high competition. 

Outlook:

• Continued increasing demand. Operating margin around 4 percent.

EAC Moving & Relocation Services consolidates market position

• Lower level of activity, but implemented efficiency programmes sustain operating margin
• Wind-down of freight forwarding business, price pressure and declining freight rates affect revenue
• Consolidation of market position in a difficult market.

Outlook:

• Revenue decreased by 15 per cent (5 per cent in previous outlook), primarily due to lower freight rates combined with a lower level of activity
• Operating margin of around 10 per cent maintained.

"We experienced a continued strong market in Venezuela in Q3, and only the production capacity limited growth in EAC Foods. We continue working on capacity expansion, and as our access to currency at the official exchange rate has improved, we look forward to catching up on time lost earlier in the year". 

"In the Asian markets we generally see an increasing optimism, and the growth trend experienced during the latest quarters appears to be robust. In EAC Industrial Ingredients demand has increased to pre-crisis levels, and apparently we are past the point of mere restocking of inventories."

"EAC Moving & Relocation Services has in Q3 experienced a declining level of activity while customers are waiting for a return to growth in investments into Asia to manifest itself. Our business has quickly and efficiently adjusted to the changed market conditions and strengthened its position in a market generally under pressure," says Niels Henrik Jensen, President & CEO.