While Estonian state-owned rail cargo operator EVR Cargo has estimated this spring that it would finish the year with a profit, the company now says that this will not be the case after all.
The cargo operator’s October and November net profit totaled EUR 719,000. Due to low goods volumes during the previous three quarters as well as a delayed decision to rent out railcars, a loss can be expected as a result of the whole year, EVR Cargo said.
“This year we made a significant investment into new rolling stock, which would support the railcar rental field in the future as well,” EVR Cargo CEO Raul Toomsalu said. “We hoped to post a positive business result this year already, but the volume of cargo carried decreased, and, due to various circumstances, the renting out of our railcars was also unfortunately delayed by several months.”
EVR Cargo in March expected to post a EUR 500,000 profit this year.
“Even though the first months of the year have caused a loss for EVR Cargo, the company should reach a profit of more than half a million euros overall for this year,” Toomas Toniste, then chairman of the supervisory board of EVR Cargo, said in March. “We have known already that we will be making a loss in the first half of the year and a profit later.” (ERR/Business World Magazine)
