Irish Ferries dispute cost ICG €29.1 million

The bitter dispute at Irish Ferries and cost of restructuring in a competitive market dragged profits lower at Irish Continental…

The bitter dispute at Irish Ferries and cost of restructuring in a competitive market dragged profits lower at Irish Continental Group (ICG).

The group's results for 2005 show that the controversial restructuring, which saw much of its workforce replaced with cheaper contracted staff, cost the company €29.1 million.

The company reported gross earnings of €46.7 million, down from €49.4 million in 2004. Earnings per share after taking account of the charge was a loss of 66.9 cent compared to earnings of 23.4 cent in 2004.

Operating profits also fell from €23.3 million to €19 million as rising fuels costs hit the bottom line.

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"ICG has taken resolute action to reduce costs in the increasingly competitive market place in which we operate. This required us to take difficult steps to outsource our vessels' crewing," said group chairman John McGuckian.

ICG said it had cut it debt by 10 per cent and that its new lower cost base has put in on a firmer footing to tackle the competition from low-cost airlines.