Note 3 - Segment recognition

Segment recognition
  Industrial Shipping  Offshore/Icebreaking
SEK 000s 2009 2008 2009 2008
Sales 1,899,550 2,005,527 125,005 401,735
Internal sales
Net sales 1,899,550 2,005,527 125,005 401,735
         
Depreciation/amortization and impairment –190,130 –149,411 –40,779 –34,671
Income from participations in associated companies
Operating profit 1) –170,466 94,563 –19,569 261,538
Net financial items –32,413 –37,053 –5,307 –29,002
Income before tax –202,879 57,510 –24,876 232,536
Income tax
Profit for the year
Assets 1,554,669 1,744,173 973,899 767,930
Capital participations in associated companies
Undistributed assets 2)
Total assets 1,554,669 1,744,173 973,899 767,930
Liabilities 785,977 845,510 863,763 583,089
Undistributed liabilities 2)
Total liabilities 785,977 845,510 863,763 583,089
Gross investments 3) 39,344 81,850 302,910 44,308

 

  Ship Management/     
  Group-wide items Total
SEK 000s 2009 2008 2009 2008
Sales 1,107,967 1,024,143 3,132,522 3,431,405
Internal sales –848,840 –783,680 –848,840 –783,680
Net sales 259,127 240,463 2,283,682 2,647,725
         
Depreciation –4,044 –3,248 –234,953 –187,330
Profit share in associated companies 93 85 93 85
Operating profit/loss –52,864 –41,501 –242,899 314,600
Net financial items 4,629 10,084 –33,091 –55,971
Profit/loss before tax –48,235 –31,417 –275,990 258,629
Income tax 54,570 7,355
Profit/loss for the year –221,420 265,984
Assets 635,696 836,054 3,164,264 3,348,157
Capital participations in associated companies 362 85 362 85
Undistributed assets 1) 7,775
Total assets 636,058 836,139 3,172,401 3,348,242
Liabilities  332,852 472,008 1,982,592 1,900,607
Undistributed liabilities 2) 15,197 27,003
Total liabilities 332,852 472,008 1,997,789 1,927,610
Gross investments 3) 22,043 12,504 364,297 138,662

 

1) Operating profit includes restructuring costs in the Industrial Shipping business area comprising vessel impairment of SEK 61 M (22) and personnel expenses of SEK 2 M (9).

2) Undistributed assets and liabilities comprise financial instruments.

3) Investments for the year and the preceding year pertained primarily to the ongoing new construction of four vessels within the Offshore/Icebreaking business area and capitalized docking fees in Industrial Shipping. In Ship Management/Group-wide, investments for the year mainly comprise new office construction.

Group management has established that operational management and financial control shall be based on two business areas and the Ship Management/Groupwide support function. The business operations comprise the two business areas, Industrial Shipping and Offshore/Icebreaking. This structure has been used throughout the Annual Report when describing operations.

The Offshore/Icebreaking business area comprises icebreaking, anchor-handling vessels that are partly used for icebreaking (primarily for the Swedish Maritime Administration), and partly for assignments for the offshore industry, with the repositioning of rigs and anchors for these.

The Industrial Shipping business area focuses mainly on contract-based shipping for Nordic base industry. The business area comprises several different areas of operation, which are integrated with each other and cooperate on tonnage and customer contracts. The RoRo Division comprises specially adapted RoRo- and container vessels, which form a full-coverage maritime transport system in the Baltic. The Bulk/LoLo Division comprises ice-class vessels in the small-bulk segment that operate in Europe and across the Atlantic. The Atlantic Division conducts paper transports using specially adapted RoRo vessels equipped with side doors, as well as RoRo traffic between the US East Coast and the Caribbean. The Container Division conducts container-based scheduled services between Sweden and the UK.

Ship Management/Group-wide items include ship management for the Group’s own and externally owned vessels, central management and administration.

Transactions between the business areas and support functions have been conducted at arm’s length.