Major restructuring looms at ferry group Irish Continental Group (ICG) as earnings slid sharply for the first half of the year.
Reporting profits down to €1.9 million from €3.3 million in the same period of 2002, a 5 per cent fall in passenger numbers and static turnover of €145 million, the company said it is discussing cost savings with workers with a view to agreeing rationalisation by the end of the year.
Sources indicated management feels the company is overstaffed compared to rivals, now including not only other ferry operators but low-fare airlines.
It is believed employees are to be asked to work every second week - under the current rota they are off five weeks out of nine - while retired workers will not be replaced.
However, the group said it is pleased with the first-half performance, which is traditionally followed by a late-summer revenue surge.
Earnings per share almost halved to 5.3 cent, while ICG is to redeem one redeemable share for 7.5 cent, an increase of nearly 10 per cent on the 6.84 cent interim dividend announced last year.
Turnover in the group's ferries and travel division, including Irish Ferries, slipped 12 per cent to €80 million.
The company said the strengthening euro contributed to the dip. As a result, profits in the division dropped from €6.2 million to €3.6 million.
Irish Ferries passenger numbers fell 5 per cent to 750,000, although the number of cars carried was unchanged.
Average yields dropped 2 per cent, due mainly to sterling's weakness.
In the roll-on/roll-off freight market, volumes grew 5 per cent, but ICG said competition had pushed freight charges to "unrealistically low levels".
Turnover in the container and terminal business increased 20 per cent to €65 million, due in part to the addition of its 2002 acquisition of HKCIL. However, profits fell from €2.5 million to €1.9 million.
ICG chairman Mr Tom Toner said the results were "resilient" given the overall shape of the economy and the uncertainty caused by the war in Iraq. Summer trading had been buoyant, although competition had forced the group to lower fares.
