EMEA News
TORM's Q3 Losses Rise Following Restructuring Effort
Danish shipping company TORM A/S (TORM) [NASDAQ:TRMD], said today its losses in the third quarter of 2012 widened to $78.5 million, compared with a $70.4 million net loss for the same period last year.
"The financial results in the third quarter of 2012 were again negatively affected by the challenging market conditions as well as TORM's financial situation," said CEO Jacob Meldgaard.
"Looking forward, the recently completed restructuring agreement will enable TORM to become cash flow positive even at the current rate levels."
The company's revenue fell 23% to $256.0 million from $331.8 million for Q3 2011, with the tanker division achieving revenues of $214 million and the bulk division bringing in $42 million.
The tanker division had an operating loss of $42 million, up from $34 million year-over year, while the bulk division's loss fell to $4 million compared to $16 million in the period last year.
For the full financial year, TROM forecasts a before-tax loss of $350 to $380 million, with further impact of the restructuring effort possible pending a Danish Securities Council ruling on the accounting effects of the restructuring.
Aside from effects of the company's financial situation, TORM said its tanker division was hit by continuing mixed economic growth signals and an oversupply of tonnage, while rates in the bulk market suffered due to drought-related problems with the U.S. grain harvest and continuing economic problems in Europe and elsewhere.
Last week, TORM announced the technical completion of its restructuring deal, which gives 72.8 percent ownership in the company to banks and another 17.2 percent to time charter partners, while providing the company with more flexibility to pay its debts.
