Torm sails past profit target and makes a 20% upward adjustment  

Danish shipping company Torm yesterday upwardly adjusted its expectations of 2008 profits by 20% or almost DKK 300m (USD 60.4m)
Danish shipping company Torm yesterday upwardly adjusted its expectations of 2008 profit by 20% or almost DKK 300m (USD 60.4m) and forecast pre-tax profits reaching USD 355-370m. The share price on OMX Copenhagen jumped by 7.5% on the same morning the news broke, writes national daily newspaper Berlingske Tidende.
Torm CEO Klaus Kjærulff says in a press release: "We expect our 2008 earnings to be the highest in the company's history. This is a consequence of our growth strategy and confirms our focus on the product tanker market. The timing of the acquisition of OMI and subsequently of 50% of FR8 was favourable in view of the positive developments we are experiencing in the tanker market."
The significant upward adjustment came as a surprise for analyst Jacob Pedersen of Sydbank. "Torm is traditionally conservative [with its forecasts – Ed] and I didn't expect an upward adjustment. It shows that they are very capable at navigating the product tanker market and getting their vessels to sail where rates are high. And it also shows that their acquisition strategy has been right."
Torm will release its H1 report on 20 August.
Founded in 1889, Torm is a well-respected name in international shipping. The company is one of the world's leading carriers of refined oil products and a significant player in the dry bulk market. Torm operates a fleet of more than 125 vessels, principally through a pooling collaboration with other shipping companies. It is headquartered in Copenhagen, and listed on OMX Copenhagen and on Nasdaq.
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