November 15 - TTS Group posted a NOK5 million (USD593,000) loss in EBITDA for the first nine months of 2016 in its multipurpose/general cargo business unit, which it attributed to customer-initiated delays in project deliveries combined with a slow market
TTS says that it expects the short-term level of activity in the multipurpose/general cargo business unit to remain low.
"The group is in the process of evaluating necessary adjustments of capacity, cost and structure of the unit. This evaluation may lead to future restructuring, with possible consequences for valuation of assets and restructuring charges," said the company in its third quarter financial report.
Overall the TTS Group reported a positive operating profit of NOK41 million (USD4.8 million) in the third quarter of 2016, compared to a loss of NOK12 million (USD1.4 million) during the same period of 2015.
The company's offshore business unit improved its operating loss from last year to break even in the 2016 third quarter, which TTS said is due to "closing of loss making projects in 2015, as well as the extensive downscaling activities implemented".
TTS added that it expects a weak offshore market in the foreseeable future, and the group's exposure towards the offshore sector, which today represents less than 10 percent of the turnover, is considerably reduced.
Commenting on the outlook for 2017, TTS states that it expects that the weak general market outlook for the marine equipment segment will influence the company, leading to a lower level of activity.
The company see particular short-term challenges within the car carrier and heavy lift segments, while the market for shipyard solutions remains strong, added the statement.
www.ttsgroup.com
