VIKING’s 2018 shaped by renewed growth and a major acquisition
After two years of slightly declining revenue, VIKING Life-Saving Equipment A/S is seeing growth once more, the company said in its release.
In 2018, VIKING acquired the Norwegian manufacturer of lifeboats Norsafe AS. Adjusting for the costs of integrating this business and the impact on revenue in the last quarter of the year, the results show growth in both revenue and earnings.
Norsafe’s lifeboat sales are included in the figures for the last three months of the year and have helped VIKING surpass DKK 2 billion in revenue for the first time in the company’s history. Profit before tax amounted to DKK 155.4 million on revenue of DKK 2,015.6 million, which given the one-off costs of acquisition and integration of Norsafe is considered satisfactory.
In recent years, VIKING has carried out a number of smaller acquisitions to build a more complete range of safety solutions. With Norsafe, which develops and manufactures high-quality lifeboats and cranes for the global market, the company is taking yet another major step in this direction.
The market for maritime safety equipment remains highly competitive. For several years, VIKING has successfully navigated competitive challenges by bundling the sale of new products with multi-year service concepts, such as VIKING Shipowner Agreement (SOA), which continues to show double-digit growth, excellent customer satisfaction and very high renewal rates.
The markets in VIKING’s biggest segments – Cargo, Passenger and Offshore – have developed in very different directions. As Cargo remains fluctuating due to uncertainties related to global trade agreements, the newbuild market, while still under pressure, is gradually normalizing and general market conditions stable. Meanwhile, the Offshore segment is recovering after the sharp fall in oil prices in 2014.
The launch of LifeCraft™, the groundbreaking evacuation solution for the cruise ship market, is imminent after years of development and a highly complex approval process. The successful completion of the critical heavy weather sea trial in November 2018 means that the hybrid between a liferaft and a lifeboat will be market-ready as soon as the final regulatory approvals are issued.
VIKING Life-Saving Equipment is a global market leader in maritime and offshore safety. Headquartered in Denmark, the corporation manufactures, supplies and services everything from chute and slide-based evacuation systems to liferafts, lifejackets, immersion suits, firefighting equipment, aviation safety gear, lifeboats, hooks, davits and more.