Post by ferryfast admin on Mar 30, 2005 0:01:36 GMT -5
Sea Containers Swings to 4Q Loss
(AP) Associated Press
03.29.2005, 05:52 PM
Ferry and high-speed train operator Sea Containers Ltd. said Tuesday that it swung to a loss in the latest fourth quarter from year-ago profit, due to an asset impairment charge and hefty costs to settle certain contract matters with the Strategic Rail Authority.
Quarterly losses totaled $13.4 million, or 54 cents per share, compared with earnings of $11.6 million, or 50 cents per share, a year ago. Revenue grew to $445 million from $423 million last year.
The latest quarter includes a $2.9 million asset impairment charge following the closure of the Irish Sea ferry route in February, and a $12.7 million Rail Division charge to settle certain contractual matters with the Strategic Rail Authority related to the expiring GNER franchise.
Sea Containers said it didn't complete the expected sale of its remaining interests in the port of Newhaven by the end of 2004 as planned. The buyer is proceeding very slowly in the process and the company may have to open up the bidding again, which could delay the sale further.
The company said that while it won't entirely eliminate the other ferries loss in 2005, Sea Containers expects it will be substantially less than in 2004, and is targeting profitability for this business in 2006 largely by moving its fast ferry fleet from Britain to the Mediterranean.
However, Sea Containers said Hoverspeed's Dover-Calais service will continue unless results prove unsatisfactory, in which case its ships will also be moved to the Mediterranean.
The company's 10-K report will be filed on March 31. Sea Containers said a recent internal review of financial controls and reporting in connection with Sarbanes-Oxley compliance revealed that the company has insufficient personnel and accounting expertise to report complex accounting matters in a timely fashion.
The financial services staff is being increased to remedy this problem, the company said, noting that this situation had no impact on Sea Containers' 2004 audit.
Sea Containers shares fell 28 cents to close earlier at $18.80 on the New York Stock Exchange.
(AP) Associated Press
03.29.2005, 05:52 PM
Ferry and high-speed train operator Sea Containers Ltd. said Tuesday that it swung to a loss in the latest fourth quarter from year-ago profit, due to an asset impairment charge and hefty costs to settle certain contract matters with the Strategic Rail Authority.
Quarterly losses totaled $13.4 million, or 54 cents per share, compared with earnings of $11.6 million, or 50 cents per share, a year ago. Revenue grew to $445 million from $423 million last year.
The latest quarter includes a $2.9 million asset impairment charge following the closure of the Irish Sea ferry route in February, and a $12.7 million Rail Division charge to settle certain contractual matters with the Strategic Rail Authority related to the expiring GNER franchise.
Sea Containers said it didn't complete the expected sale of its remaining interests in the port of Newhaven by the end of 2004 as planned. The buyer is proceeding very slowly in the process and the company may have to open up the bidding again, which could delay the sale further.
The company said that while it won't entirely eliminate the other ferries loss in 2005, Sea Containers expects it will be substantially less than in 2004, and is targeting profitability for this business in 2006 largely by moving its fast ferry fleet from Britain to the Mediterranean.
However, Sea Containers said Hoverspeed's Dover-Calais service will continue unless results prove unsatisfactory, in which case its ships will also be moved to the Mediterranean.
The company's 10-K report will be filed on March 31. Sea Containers said a recent internal review of financial controls and reporting in connection with Sarbanes-Oxley compliance revealed that the company has insufficient personnel and accounting expertise to report complex accounting matters in a timely fashion.
The financial services staff is being increased to remedy this problem, the company said, noting that this situation had no impact on Sea Containers' 2004 audit.
Sea Containers shares fell 28 cents to close earlier at $18.80 on the New York Stock Exchange.