Outlook and profit appropriation
EVENTS AFTER THE CLOSING DATE
The extreme weather with cold temperatures and large amounts of snow caused large disruptions for rail traffic in Sweden during the winter. Accessibility to the tracks was limited at the same time as several of the country's largest shunting yards functioned at significantly reduced capacity. This had large consequences for Green Cargo's production and the results for the early months of the year were burdened by loss of income and increased costs for repairs and maintenance of locomotives and wagons.
The savings program implemented in 2009 introduced organisational changes for a number of areas within the business. At the end of the year, Green Cargo extended its agreement with the IT company, EDB Business Partner, for application management and operational development. The agreement transfers a large portion of the areas of responsibility previously handled by the central IT function to EDB, which in conjunction with this will absorb more than 20 of Green Cargo's employees in this area. The business area will be transferred on 1 March 2010. The goal is to gain better control over costs for our IT system and increase our resources for the development of our core business.
In October, Mikael Stöhr was appointed the new President and CEO of Green Cargo AB. He will begin in April 2010, replacing Lennart Pihl who has been interim CEO since July 2009. The CFO, Gunnar Andersson, left the company at the end of February 2010 and the recruitment of his successor is underway. Until a permanent successor is appointed, Green Cargo's Group Chief Controller, Richard Engel, has been appointed interim CFO.
OUTLOOK
After a dramatic year, we find ourselves standing at the cusp of an upswing in the economy. At the start of 2010, volume growth eased somewhat, but we believe that it will continue a weak recovery during the year. As customers in our most important segments experience increased demand, this will be reflected in the transport volumes of our existing assignments.
Within our third-party logistics operations, the new capacity in our expanded terminals is ready for use and we are seeing continued opportunities for new business, both with existing and new customers. In particular, there are opportunities for complete logistics solutions that combine warehousing with rail transports and road distribution.
At the same time, a major upgrade of our locomotive fleet is underway and modernised locomotives straight from the factory floor will enter production during the year. This will have a positive effect on both quality and environmental performance.
We implemented an extensive project to adapt our cost levels and streamline our operations and the results have had a good effect. Our big challenge now is to complete the project that was started even as the positive signals from our environment become stronger. Using our achievements during the year as inspiration, we are determined to achieve the cost savings goal, which will put us in a good position to reach our targets and be profitable again as early as 2010.
Appropriation of profits
| At the disposal of the AGM (SEK): | |
| Profit/loss brought forward | 1 205 058 779 |
| Group contributions after tax | 3 912 733 |
| Profit for the year | -129 386 205 |
| Total | 1 079 585 307 |
| The Board of Directors and CEO propose the profits be appropriated as follows: | |
| Carried forward | 1 079 585 307 |
| Total | 1 079 585 307 |
Green Cargo's national transports are an approved Good Environmental Choice