Danaos 4th quarter and year end results

56184.pdf (application/pdf Object).

Linked above is the 4th quarter and year end earnings results for Danaos Corporation DAC. Danaos is an owner of approximately 40 container ships.

For 2008 the company had pretty nice results. But 2009 looks like it could be pretty rough. The press release outlines the economic factors affecting Danaos. The fact that gets my attention is the 30 new container ships on order. 7 are to be delivered in 2009 and 10 in 2010. The very soft container market makes the prospect of putting these ships to work problematic.

DAC is currently in default of their debt covenants and have suspended the dividend. I have added DAC to the suspended dividend list. On a positive note, 80% of the outstanding shares of DAC are owned by officers or directors of the company. They have a strong interest in keeping the company on track and restoring the dividend.

More on this topic (What's this?)
Containerized Shipping
Read more on Danaos at Wikinvest
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