HHLA raises forecast

The recovery in throughput and transport volumes of Hamburger Hafen und Logistik AG (HHLA) picked up substantially in the course of the first-half year of 2010.

This was reflected in revenue and earnings development: at 505.1 million euros, group revenue in the first-half year of 2010 were up 0.8 % compared to the previous year. Group profit after tax improved by 2.7 % to 44.9 million euros. For the full year 2010, HHLA now expects volumes to grow more than 10 %, revenue above previous year and an EBIT margin of at least 15 %.

"Current economic momentum makes us confident for the remainder of the year. Based on the good business development during the first half of 2010, for the full year 2010, we now expect double-digit volume growth as well as revenue above last year's, despite fierce market conditions", stated Klaus-Dieter Peters, Chairman of the HHLA Executive Board, on publication of the interim report for the months of January to June 2010. "Furthermore, with the entry into service of a new state-of-the-art mega-containership berth in Hamburg, the opening of a hinterland terminal in Katowice, along with the launch of two joint ventures for expanding our hinterland network in Germany, we have set the course for further growth."

After a restrained first quarter, economic recovery in the second quarter accelerated rapidly. In the first half year of 2010, HHLA's container terminals in Hamburg and Odessa achieved throughput of 2,633 thousand standard containers (TEU), 8.9 % more than in the corresponding period of the previous year – as compared with an increase of just 0.5 % in the first quarter. At 798 thousand TEU, HHLA's intermodal companies transported 11.4 % more than in the first six months of 2009 (growth rate after the first quarter: 3.2 %). This momentum on volumes was reflected in HHLA Group revenue and earnings. Whereas in the first quarter of 2010 essential key figures were still clearly negative, on the half-year basis these have stabilized. Some of the figures have again turned positive.

Overview of important key group figures

(January-June 2010)

* In the first half year, revenue was 505.1 million euros, 0.8 % higher than in the previous half year. In the first three months, a decline of 7.0 % still had to be reported.

* EBITDA (earnings before interest, tax, depreciation and amortization) at 134.6 million were 6.3 % below the previous year's figure. The decrease in the first quarter was still 19.6 %.

* At 81.4 million euros, corresponding to a decline of just 0.2 %, EBIT (earnings before interest and tax) again reached the previous year's level, after decreasing 30.6 % in the first quarter.

* Profit after tax improved by 2.7 % to 44.9 million euros, having been 36.6 % lower in the first quarter.

* The equity ratio was 39.0 % on 30 June 2010.

In the first half of 2010, revenue of the publicly quoted subgroup Port Logistics, HHLA's core business, were at 490.7 million euros, 0.8 % higher than the previous year's level. Earnings for the subgroup were just 0.5 % lower at 74.5 million euros. With this, the subgroup Port Logistics generated 97 percent of Group revenue and 92 percent of Group EBIT.

Setting the course for growth

As part of its long-term business strategy, between January and June 2010 HHLA implemented or launched the following project

* Feeder Logistik Zentrale (FLZ, with Eurogate). The Feeder Logistik Zentrale optimizes feeder traffic in the Port of Hamburg.

* Joint Venture IPN Inland Port Network (with Eurogate). IPN is paving the way for a network of full-service terminals in Germany that will meet the quality requirements of maritime logistics and provide improved conditions for sustained growth of containers being transported by rail.

* Katowice Hinterland Terminal. HHLA has built a state-of-the-art container terminal for intermodal traffic in Katowice to link the Southern Polish economic region of Silesia more closely with the Port of Hamburg.

* Mega-containership berth at Container Terminal Burchardkai. Five cutting-edge tandem container gantry cranes plus an almost entirely automated block storage system, as well as a recently developed terminal control system, that were largely completed in the second quarter will improve conditions for handling containerships of the latest generation. The "CMA CGM Christophe Colomb", the largest containership ever to call at the Port of Hamburg, was handled here on 13 July 2010. From August onwards, mega-ships of the latest generation with slots for up to 14,000 standard containers (TEU) will be calling here on the Asia-Europe Service operated by the CMA CGM and Maersk shipping lines.

* Joint venture by HHLA's CTD subsidiary with Bremen-based transport firm EKB. This joint venture will ensure a full delivery service over the "final mile" between the customer and the inland terminal for multimodal traffic, hence improving yet another link in maritime transport chains in Germany.

About HHLA

Hamburger Hafen und Logistik AG (HHLA) is one of the leading port logistics groups in the European North Range. With its Container, Intermodal and Logistics segments, HHLA is positioned vertically along the transport chain. Efficient container terminals, high-capacity transport systems and a full range of logistics services form a complete network between the overseas port and its European hinterland.