Last checked at 3 Feb 2009 07:00
For Immediate Release 3 February 2009
Globaltrans reports solid freight rail turnover performance in 2008 despite challenging environment in Q4
Globaltrans Investment PLC ("Globaltrans" or together with its consolidated subsidiaries the "Group"), Russia's largest privately owned freight rail operator, today announces an update on the Group's operating performance for the year ended December 31, 2008.
Overall, the Group's freight rail turnover(1) in 2008 increased by 1% to 61.7 bn tonnes-km compared to 61.0 bn tonnes-km in 2007. Whereas the first nine months of the year showed a healthy growth, freight rail turnover(1) in the fourth quarter declined by 11% versus the comparable period of 2007. This decrease was mainly caused by weak demand from certain sectors driven by recent economic developments.
In response to the challenging conditions, Globaltrans is exploiting the flexibility of its gondola car fleet to diversify away from sectors with reduced demand, and increase activities among more resilient industries.
Commenting on the announced results, Sergey Maltsev, CEO of Globaltrans said:
"Despite the adverse economic conditions in the fourth quarter of 2008 and the resulting decline in transportation volumes of certain sectors, Globaltrans was still able to deliver solid operating results for the year. Globaltrans is one of Russia's most efficient rail freight operators and, as a reliable, efficient and cost-effective carrier, is well positioned to face the challenges of the current economic environment. Looking ahead in 2009, we are committed to leveraging our experience and strong market position to weather the challenges and continue to deliver value to our shareholders".
The full operating statistics and consolidated financial statements for 2008 prepared in accordance with IFRS will be released in the second half of April 2009.
NOTES
(1) Freight rail turnover calculated as tonnage of freight carried multiplied by distance carried, measured in tonne-kilometres.
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NOTES TO EDITORS
Globaltrans is Russia's largest privately owned freight rail operator by number of rolling stock operated. Globaltrans provides freight rail transport and logistics services to over 25,000 destinations covering every major industrial region in Russia and part of the Ukraine, with a regional network encompassing 10 branch offices. The Group's key customers are large industrial blue chip companies from the key sectors of the Russian economy.
Globaltrans is the only public company in the Russian railway sector. In April 2008, Globaltrans was listed on the London Stock Exchange (LSE) with a free-float of c. 30%. For more information on the company, please visit the website: www.globaltrans.com.
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Some of the information in this document may contain projections or other forward-looking statements regarding future events or the future financial performance of Globaltrans. You can identify forward-looking statements by terms such as expect, believe, anticipate, estimate, intend, will, could, may or might and the negative of such terms or other similar expressions. Globaltrans wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Globaltrans does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Globaltrans, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries in which Globaltrans operates, as well as many other risks specifically related to Globaltrans and its operations.