Revenue in the first quarter (ending January 31 2008) increased by 44.0% to EUR 440.8 million (Q1 2007: EUR 306.2 million), reflecting a strong performance from the logistics division in North America. Underlying Group revenue for the quarter increased by approximately 10%, which the management said is in line with their expectations.

Revenue from Shipping Services was EUR 149.2 million (Q1 2007: EUR 131.0 million). This represents a year over year increase of close to 14% for the quarter, due to strong performance in the North Atlantic and Baltic region.

Revenue from Logistics Services was EUR 294.2, which represented a year over year decrease of approximately 9% for the quarter. Performance was impacted by the UK market being slightly below expectations. However, strong performance continued in the US, Canada and Asia, providing a good platform for future growth.

Operating expenses totalled EUR 423.1 million (Q1 2007: EUR 294.7 million), representing a 43.6% increase, resulting from the acquisition of Versacold in Canada in Q4 2007 and the subsequent larger revenue base.

EBITDA margin was 9.0% in the quarter, in line with management expectations; EBITDA increased by 55.6% and totalled EUR 39.7 million.

A net loss of EUR 38.9 million was recorded in the quarter, compared to a EUR 5.6 million loss from the same period in the previous year. The loss was primarily due to an unusually high impact from financial items in the quarter, including:

EUR 39.1 million in financing costs. As of Q3 2008, the interest expense will be significantly reduced, following the asset sale in North America in second quarter.

EUR 17.9 million in currency exchange loss.

Eimskip's President & CEO, Stefan Agust Magnusson, commented: “We have seen a solid start to the year with both revenues and EBITDA margins in line with our expectations. The underlying business continues to perform well, but earnings have been adversely impacted by external financing costs in the quarter. Going forward, we expect to see significantly reduced financing costs from Q3 2008 onwards, following the completion of our asset sales in North America.

"Along with the solid growth in our underlying business, we will continue to integrate the acquired companies into the group and work towards our previously identified synergy targets.”

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