Aker Seafoods has decided to make changes to its activities in order to achieve more rational operating units and to improve group profitability. The company said that these adjustments include changes to the fleet and at the processing facilities to ensure a better product mix and to enhance profits.
In the third quarter result the Aker Seafoods group achieved operating revenues of NOK 586 million, when EBITDA was negative at NOK 13 million. That compares with NOK 427 million and a positive NOK 27 million respectively in the same period of 2007. Operating revenues and EBITDA for the first nine months were NOK 2 088 million and NOK 121 million, compared with NOK 1 807 million and NOK 176 million respectively in the same period of last year.
According to the company the third quarter results are affected by writing down inventories and storage costs for inventory, low supplies of raw material, and increased fuel prices for the fleet. Aker Seafoods CEO Yngve Myhre informed that the current financial crisis lowers the demand from consumers and reduced prices. As a result the company fails to achieve its goals of EBITDA margins of 7.5 to 9 percent for this year.
For the third quarter isolated, the prices for some products declined while the inventory went up. Aker Seafoods has noted that demand and prices for environmentally certified products are increasing. Therefore, te company has taken firm decision to adapt current market strategy and make certain changes to suit the demand of the market so that it could achieve its target results.
