RNS Announcements
<< Back
RE: Chairman’s Statement on Current Trading to
the Annual General Meeting
Trading in the first quarter of 2006 has been broadly in line
with expectations at the time of our results statement in early
March 2006. In the first 17 weeks of the year, we have seen a
continuation of the trends seen in 2005, i.e. a weaker passenger
market and a stronger freight market.
In the period to 30th April, our car volumes are down 9.0% compared
with the previous year. In the first quarter, a period
for which statistics are available, our performance is ahead
of the market. The decline in the market generally reflects substantial
increases in competing air capacity, particularly to and from
regional airports in Ireland and the UK, and new destination
options, particularly from the UK.
The freight market remains strong. In Irish Ferries, RoRo
freight volumes are up 4.0% broadly in line with the market while
in our Container & Terminal Division container freight volumes
are in line with 2005, with growth in door to door volumes offset
by some contract losses in the feeder market.
Fuel costs remained high during the period, approximately €2.5m
more than in the same period in 2005, part of which we are recovering
by way of fuel surcharges. We have adjusted our passenger
capacity through a reduction in the frequency of our fast craft,
Jonathan Swift, from 3 round trips per day to 2 which will also
mitigate the effect of the higher world oil price. The schedule
remains under constant review.
The necessary restructuring of our cost base, announced in
late 2005, to take account of the difficult external environment
is now virtually complete. This process is on target to deliver
the planned level of savings and align our
cost base more closely with our international competitors.
Capacity
changes on the Irish Sea reflect market trends. In tourism
there has been a reduction in capacity with
one fast ferry operator on the Dublin – Liverpool
route ceasing trading and reductions in fast
ferry frequency by us and by our competitor
on the Holyhead route. In
the freight market the main freight operator
on the Dublin – Liverpool
route has added some driver accompanied capacity
and our main competitor on the Dublin – Holyhead route
is also adding freight capacity in July.
In a development of our port activities I am pleased to say
that we have reached agreement with The Port of Belfast to develop
a new container terminal at Herdman Channel in Belfast. The
development, which has already commenced will increase the Port’s
container handling capacity by 40,000 units on an annual basis
and will be operational in Autumn 2006. The new facility
will handle vessels for Eucon Shipping & Transport Limited
and Eurofeeders Limited, both of which are wholly owned subsidiaries
of Irish Continental Group. This development will complement
our existing terminal activities in the Port of Dublin
John B. McGuckian
Chairman
3rd May 2006
11.00am
|
