Shipping line Finnlines has announced it is to cut costs and reduce staff. The decline in freight volumes and difficult market conditions mean the company will adjust capacity to demand wherever possible, and this does not rule out personnel cuts.
The sharp drop in cargo volumes started in the last quarter of 2008, affecting the company's revenues and financial performance at least during the first half of 2009, even though some signs of recovery have already been seen on the freight market.
The result for 2008 showed operating profit of EUR 35.4 million, but the company posted a loss before taxes of EUR 3.2 million, compared with a EUR 40 million profit in 2007. Return on equity (ROE) was 0.2 (8.0) % and return on investment (ROI) was 2.9 (6.9) %.
The Board is to propose to the Annual Shareholders' Meeting that no dividend be paid out for 2008 "due to the weak financial performance, poor economic prospects in the immediate future and the ongoing extensive investment programme".
Finnlines operates 16 vessels and employs around 2,400 persons.
Since 2006 the company has been owned by the Italian Grimaldi Group, holding just under 65% of the shares and voting rights.
