The recession hit Green Cargo very hard in 2009. Volumes in railway transport fell by 24 percent, with the Group reporting a loss after financial items of 21.5 million EUR. The powerful action programs that were implemented produced the desired effects in the second half of the year. Along with an increase in demand, this led to a considerable improvement in results, with a profit and good cash flow in the final six months of the year. These action programs will continue and will reduce Green Cargo’s costs by more than 58 million EUR by 2012.
“The recession affected our customers in, for example, the steel and motor industry, very hard, which had a significant effect on our transport volumes. Several action programs were carried out during the year, with great understanding and a great ability to act throughout the company. We are happy that we were able to deliver a profit for the second half of the year,” says acting CEO Lennart Pihl.
Quality, measured in terms of punctuality to customers, maintained a high level throughout the streamlining process. Freight trains achieved 95 percent punctuality to customers for the third quarter in a row, despite a fall in December due to winter problems. Traffic safety achieved its best result since Green Cargo was established in 2001.
“We delivered in terms of quality and safety, and achieved a record for new business in 2009. Although this does not balance out the fall in volumes from our major customers, we are witnessing a great interest in railway logistics and Green Cargo’s offers. So we have confidence in the future,” says Lennart Pihl.
2009 in brief:
- Loss of 21.5 million EUR, but a strong improvement and profit in the second half of the year
- A large amount of new business guarantees future growth
- New or extended contracts were signed in 2009 with companies including Outokumpu Stainless, Trätåg AB, Akademibokhandeln, Berling Media, Svenska Shell, Nestlé Sverige AB, Berntsson Brands AB, Domaine Wines and Volvo Logistics
- Gross investments in 2009 amounted to 89.5 million EUR (58.7), mainly in new and modernized locomotives and wagons, and storerooms. The first modernized diesel locomotives will be delivered and put into service in 2010 with a better work environment and new engines that reduce CO2 emissions by around 20 percent
- Green Cargo’s third-party logistics had its best year with profitable growth of 15 percent
