Boskalis' previously announced programme to optimise its organisation is now in the implementation stage. The measures primarily involve sharper purchasing, the rationalisation of equipment, and better portfolio management for the home markets. Worldwide, these measures will lead to 450 job losses, roughly 200 of which will be in Holland.

The 15m 20m cost of this package will generate additional pressure on the 2004 profit and loss account.

Company CEO R van Gelder said the order book did remain constant and a healthy operational cash flow was being generated.

Fleet utilisation was moderate, with a lower utilisation of the larger trailing suction hopper dredgers due to the continuing unresolved situation in Singapore.

For the first half of this year, Boskalis expects lower turnover compared to 2003 and a modest net profit after allowing for the one-off costs or reorganisation. Mr van Gelder did not make any specific comments about the expectations for the remainder of this year but was decidedly optimistic about the longer term prospects. 'Even though we're in a dip now, there is a lot of potential for the dredging sector. The demand for maritime infrastructure is substantial', he said.

MJInformation No: 19540