Kvaerner Posts 1999 Record Loss, Expects a Brighter 2000
Tuesday, February 22, 2000
Kvaerner ASA announced a record 1999 pre-tax loss, hit by restructuring costs and weak non-core operations, but forecast an upturn at its core businesses in 2000. London-based Kvaerner recorded a pre-tax loss of $667 million from $205.5 million a year earlier after a sweeping restructuring plan was launched in April, which aimed to sell off non-core activities.
Officials said a planned restructuring into a "New Kvaerner," to include only core business areas, would take another one to two years, and predicted that core businesses would continue to improve in 2000.
Analysts said results for non-core areas were disappointing, while core operations had performed stronger than expected, adding that the market was awaiting further steps in the planned exit of shipbuilding.