Irish Continental Group plc (ICG) has announced a fall in profits for the first six months of 2004, but remains optimistic for the year as a whole.
The group made pre-tax profits of €1.4 million in the year to June 30th, 2004, compared to €1.9 million for the same period last year. Turnover was €135.8 million, compared to €136.9 million in 2003.
However car volumes are up 3.5 per cent since July 1st, compared with the same period last year, the company said, and freight volumes are also up for the second half of the year by approximately 5 per cent.
Furthermore, the company said that the successful renegotiation of rosters for seagoing staff will deliver a substantial reduction in costs on the Irish Sea in the second half of the year.
"The bulk of our earnings are generated in the summer and trading to date in the peak season has been encouraging, with growth in both car and freight volumes," said ICG chairman, Mr John McGuckian.
"Although the first half of the year has been more difficult than we had anticipated, based on summer trading we remain cautiously optimistic on the outlook for the year as a whole."
Turnover in the ferries division was €71.5 million, practically unchanged on the first half of 2003 (€71.9 million). Total number of cars carried was 165,000, compared to 174,000 in the first half of 2003.
"Total passenger numbers were affected by a decline in the foot passenger market and we recorded an 8 per cent drop in overall passengers to 691,000," it said.
Internet sales have developed strongly, the company said, and year-to-date bookings on the internet were up 40 per cent on the previous year. They now account for 36 per cent of all passenger bookings.
Turnover in the container and terminal division was €64.7 million, relatively unchanged when compared with the first half of 2003 (€65 million). However operating profits were €0.4 million compared to €1.9 million in 2003, the main reason being a delay in the opening of a terminal extension in Dublin Port.
Davy Stockbrokers described the results as "decent". It said that as most earnings were at the end of the year, the results were of limited importance.
