Iceland's Eimskip Boosts Profit on Traffic Surge

Eimskip increased third quarter operating profit 7.6 percent year-over-year to $14.85 million, as the Icelandic container shipping and refrigerated logistics company carried 11 percent more cargo.

This lifted profit in the first nine months by 15 percent to $46.6 million from $40.5 million in the same period in 2010. The third quarter financial performance and increased traffic volumes “in rather difficult times” exceeded expectations, said Eimskip CEO Gylfi Sigfusson.

“That said, it’s clear that this environment is still quite demanding, so it’s vital to keep close tabs on any outside factors that may impact the company’s performance.”

Eimskip boosted its liner network in recent months by adding ships on the North Atlantic to attract more business from North America and northern Scandinavia.

The company ordered two 875 20-foot equivalent units containerships worth $50 million from China, which will be delivered in the first half of 2013. Eimskip, which has a fleet of 19 ships and 1,250 employees in 16 countries, underwent a $2.2 billion restructuring in 2009 after it was snared in the collapse of the Icelandic economy.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.