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February 05, 2010

Green Cargo reports 2009 loss but optimistic for the future

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GREEN Cargo, Sweden, reported a loss of Euros 21.5 million in 2009 as the recession took its toll on the freight operator with overall volumes down by 24%. The company, however, says a streamlining process implemented in the second half of the year led to a considerable improvement in results enabling it to achieve a profit and good cash flow for the final six months of 2009. With these programmes set to continue, Green Cargo predicts that it will have reduced its costs by more than Euros 58 million by 2012.
"The recession affected our customers very hard in, for example, the steel and motor industry, which inevitably had a significant effect on our transport volumes" says acting CEO Mr Lennart Pihl. "Several action programmes were carried out during the year with great understanding and a great ability to act throughout the company. We are happy that we were able to deliver a profit for the second half of the year."

Despite the streamlining, the company maintained a high level of punctuality to its customers with 95% of freight train deliveries on schedule. Results for traffic safety were also the best since Green Cargo was established in 2001, while the company's gross investments for 2009 totalled Euros 89.5 million, with the funds mostly spent on new and modernised locomotives and wagons, as well as storage facilities.


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