Nurminen Logistics profits drop sharply in 2018

Nurminen rail freight Hefei Helsinki

Nurminen Logistics’ net sales increased by 4.1% to €78.9m for the year 2018. However, its adjusted operating profit decreased by 45.5% to €0.9m (2017: €1.7m).

According to Olli Pohjanvirta, Nurminen Logistics Board Chairman, despite the total growth of 4.1%, the adjusted operating profit remaining at €0.9m was a disappointment. The company faced unexpected challenges in its resource planning, including intense amount of groundwork for the railway transit connection from Finland to China and implementing Nurminen Logistics’ new enterprise resource planning (ERP) system. The railway transit connection to China launched by the company is the only regular rail connection to the Nordic countries.

Nurminen’s results were also affected by the volume of forest and metal industries which decreased from 2017 and were partially replaced by low flow merchandise. Chemical deliveries had a steady volume throughout the year.

Nurminen Logistics sold its subsidiary in Russia in October 2018. The transaction further enhanced its financial position and should allow for further investments in continuing digitalization of business functions, traffic to China and possible acquisitions.

On 8 March 2019, Nurminen announced that starting from March 18, 2019 former Finnair’s CEO and Vice President Ville Iho will be the new Nurminen Logistics CEO. With a background in industrial engineering, Iho had a successful career at Finnair and was also Chief Operational Officer of Royal Brunei Airlines.

Nurminen Logistics is targeting significant growth in rail transport services between Finland and China, and Ville has been successfully implementing and leading similar reforms in his previous positions.

Source: Nurminen Logistics