Kvaerner issues profit warning

Kvaerner has issued a profit warning to its shareholders about the third quarter earnings and reviewed the performance of its various divisions ahead of the arrival of a new chief executive, Kjell Almskog. Mr Almskog has said that Kvaerner could be: “Half its size and twice as good.”

The group will be looking at each company and those unable to make a profit in two years are likely to be sold, said a spokesman. With the current slump in newbuilding prices this could apply to shipyards.

One yard not under threat is Philadelphia where the US government has made $400 million available for modernisation of which $80 million has been spent to date. Kvaerner intends to build container ships in the yard, and says it will be at least a decade before the infrastructure of sub-suppliers would be in place to build other vessels like cruise ships in the US.

Kvaerner has curtailed its discussions with the French government about a possible purchase of Ateliers et Chantiers du Havre. The yard expects Government support until 2000 when it delivers the last of three chemical tankers to Stolt at which point it will close with the loss of 740 jobs unless a buyer is found.