Icelandic Group will publish its annual accounts
and fourth-quarter statement for 2005 on 16 March. The Company did not publicly disclose its
operating budget prior to the fourth quarter of 2005, but it is now apparent
that the operating results for the quarter will fall short of management
expectations and considerably below the performance of the third quarter of
2005. The principal reasons for this are
Anticipations of improved performance in December for
Coldwater UK did not materialise, with losses continuing in the fourth
Substantial restructuring costs for Icelandic France
were expensed, in addition to the fact that results from regular operations
The operation of the shrimp company Ocean to Ocean in
the United States was disappointing during the quarter, with negative returns
instead of the anticipated positive results.
The main reason for this was increased supply, which resulted in
declining sales and falling prices of shrimp products in the US market.
The high price of raw material had the effect that the
results of Icelandic’s manufacturing activities in Asia were not in line with
The fall in the market price of shares in Fishery
Products International led to the expensing of just under ISK 200 million
during the quarter.
Work is in progress on various efficiency
measures within the Group and the previously presented operating goals of the Company
for 2006 remains unchanged. The budget
projects income at ISK 110-120 billion, and an EBITDA (ratio) target of 5.5%
before restructuring expenses.
For further information,
Gunnlaugur S. Gunnlaugsson, Executive
chairman of the Board of Directors of
Icelandic Group, tel. +354 892
Bogi Nils Bogason, Chief
Financial Officer, tel. +354 861 7803