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IG
Icelandic Group - Profit Warning   8.2.2006 09:16:22
Flokkur: Afkomuviðvaranir      Íslenska  English
Icelandic Group will publish its annual accounts and fourth-quarter statement for 2005 on 16 March

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 the following:

 

·          Anticipations of improved performance in December for Coldwater UK did not materialise, with losses continuing in the fourth quarter. 

 

·          Substantial restructuring costs for Icelandic France were expensed, in addition to the fact that results from regular operations were poor.

 

·          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 budget projections.

 

·          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, please contact:

 

Gunnlaugur S. Gunnlaugsson, Executive chairman of the Board of Directors of

Icelandic Group, tel. +354 892 7014

 

Bogi Nils Bogason, Chief Financial Officer, tel. +354 861 7803

 

 

 

 


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