The income of JSC TransComtainer fell by 4% to 3.62 bln rubles in the first quarter of 2009, compared with the same period last year. The net profit made up 9.65 mln rubles versus 588 mln the year before. The sharp decline in profit mainly resulted from the global economic crisis and the changes in volumes and geography of shipping in the aftermath, said Peter Baskakov, the CEO of JSC TransContainer.

“The first quarter has always been dull for us in terms of profit as winter is traditionally a “dead” season for railway companies. This year the major loss fell on the first two months. Even though in March we commenced resuming the pace of the better days, it was clear that the first-quarter figures would be quite dismal. Given the recession in industrial production, we’ve been very cautious with our pricing policy and very often used to make concessions to our customers in order to bolster them in hard times. In the first quarter, the changed geography of operations made the empty run ratio leap, which also had a negative impact on the performance. So, the figures did not take us aback”, told Peter Baskakov.

According to JSC TransContainer’s CEO, the costs for the maintenance of the vital facilities, including, first of all, the rolling stock, coupled with the decreased income had an adverse effect upon the company’s net profit. “In 2008, JSC TransContainer had been heavily investing in the updating of the rolling stock and modernization of terminals. That is why depreciation and leasing costs in the first quarter of 2009 were well in excess of the first-quarter figures in 2008”, Peter added.

The profit was also influenced by the one-time increase of expenses, as the company repaid the principal on series 01 bonds in March 2009.

In the first quarter, the assets of JSC TransContainer reached 29.67 bln rubles, up 14% compared with the same period last year.

PRESS CENTER OF JSC TRANSCONTAINER»