Business News


Intereuropa Back to Profit in 2011

Koper, 27 February (STA) - Logistics concern Intereuropa exceeded plans in 2011, as its sales revenues of EUR 211.9m were up 11% compared to the year before. Intereuropa made an operating profit for the first time since 2008, amounting to EUR 6.8m, the company said in a press release on Monday.

The operating profit is an improvement over the 2010 operating loss of EUR 27.2m. Net loss was below plans as well, amounting to EUR 7.6m.

Net loss was also well below the 2010 figure of EUR 39.2m. Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached EUR 22.7m, up 5% on the year before and 4% above plans, Intereuropa said after a supervisory board meeting.

All three of the concern's main departments saw their sales increase in the past year: logistics solutions generated nearly EUR 30m in revenues, 20% more than in 2010, transcontinental transport generated EUR 49.4m in revenues, up 15%, while land transport generated EUR 127.5m, an 8% increase.

The management presented to the supervisors today the progress of negotiations with the creditor banks, which approved a moratorium on capital payments until 30 September. Creditor banks expect that the concern continues to sell off real estate of the Russian subsidiary Intereurope-East and other assets.

The supervisors expressed support for the managements' efforts in negotiations with the creditor banks and called upon the shareholders to support a possible conversion of claims into capital. The supervisors also called upon major shareholders to say if they are willing to provide fresh capital, either on their own or with banks.

Banks have shown willingness to convert debt into capital. They expect that owners will lower capital stock by decreasing nominal share value to EUR 1 and approve fresh capital with conversion of the banks' claims.

"Creditor banks do not intend to manage the company but to reprogramme credit liabilities in a way that would allow sustainable liabilities and a later sale of stock to a strategic investor," the press release said.

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