German KG house Lloyd Fonds will conclude the business year 2008 with an after-tax loss. The company expects the loss to be in a low single-digit million range.
German KG house Lloyd Fonds will conclude the business year 2008 with an after-tax loss. The company expects the loss to be in a low single-digit million range.
Earlier this year, Lloyd Fonds had expected to see net profits of ?12m ($16.8m) in 2008.
The company admitted that the weak demand for KG shares in the fourth quarter of 2008 due to the financial crisis contributed to the negative result. ?We sold next to nothing in the fourth quarter 2008?, said Torsten Teichert, chief executive of Lloyd Fonds.
Things have become much worse than expected earlier this year. Lloyd Fonds sold almost none of the shares of the shipping funds launched in September. The lack of earnings from the funds and from other investments resulted in the after-tax loss.
Mr Teichert fears that the negative investment climate will continue in the first quarter of 2009. ?A number of projects we had planned will not be feasible any more?, he said.
Because of declining demand, Lloyd Fonds already announced plans in November to cut its workforce by 15% to 120 by the end of 2008. The group is restructuring its organisation and is merging its fund structuring and management divisions for the different fund types.
Shipping funds are Lloyd Fond"s most important business class with ?116m sold in the first nine months of 2008. In November, the KG house had an orderbook of vessels with a total value of more than ?1.1bn.
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