HHLA growths despite Economic Crises in Russia and Ukraine
13 Nov 2014 09:10 Economy
Hamburger Hafen und Logistik AG (HHLA) increased its revenue by 6.0 percent to € 906.7 million in the first nine months of 2014. Growth in the operating result (EBIT) was even stronger at 10.9 percent. The company upped its operating result to € 131.3 million in the first three quarters. HHLA expects its operating result on Group level to be in the region of the upper end of the guidance range for the full year 2014.
Business developed successfully at Hamburger Hafen und Logistik AG in the first nine months of 2014. The Group further expanded its position in the container transport market and increased its hinterland transport volume by over 10 percent. HHLA also experienced further growth in its container throughput. The pace of growth was restricted, however, by a decrease in feeder traffic at HHLA’s Hamburg terminals which stemmed partly from a significant reduction in traffic with Russia. The economic impact of the conflict in Ukraine also affected the rate of throughput growth.
Revenue and the operating result developed pleasingly: both outperformed volume growth of HHLA. Amongst other things, this was attributable to operational improvements, moves to optimise the cost of coping with peak loads, and a noticeable increase in the proportion of higher-revenue and higher-margin overseas traffic in the handling mix. “Our strategy of expanding capacity in line with demand, boosting mega-ship handling efficiency and driving growth in our hinterland transport services has been validated once again,” said Klaus-Dieter Peters, Chairman of HHLA’s Executive Board.
HHLA’s Hinterland Strategy Continues to Be Successful
HHLA’s Intermodal companies, which provide road- and rail-bound transportation in the European hinterland, generated clear growth in the first nine months of the year and succeeded in gaining market share despite operating in a highly competitive environment. They transported 973 thousand standard containers (TEU) – 10.2 percent more than in the same period of the previous year. This growth was partly driven by transport connections with the Czech Republic, Slovakia and Hungary. The transport links with Germany, Austria and Switzerland which were launched in late 2012 also recorded substantial growth, contributing to this increase as well.
Far East Traffic Triggers Throughput Growth
HHLA’s Hamburg terminals increased their throughput by 1.8 percent in the first nine months despite a drop of around 5 percent in feeder traffic, especially with Russia. Having considerably improved its market position in Northern Europe recently, HHLA almost retained its strong standing. This was primarily due to further marked growth of 8.5 percent in Far East traffic. Together with the fall in container throughput in Odessa due to the conflict in Ukraine, this meant that container throughput at all the HHLA terminals (Hamburg and Odessa) increased by 0.3 percent in total.
Forecast for the Full Year 2014
Based on business developments to date, HHLA still expects the throughput volume for 2014 to be up marginally on the previous year’s figure. Significant growth in container transport is still anticipated. With this in mind, HHLA assumes its annual revenue to exceed the previous year’s figure and expects that the operating result on Group level will be at the upper end of the advised range of € 138 million to € 158 million.
Development of Key Group Figures at a Glance (January to September 2014)
- Revenue rose by 6.0 % to € 906.7 million.
- The operating result before depreciation and amortisation (EBITDA) came in at € 219.6 million – up 5.5 % on the prior year.
- The operating result (EBIT) increased by 10.9 % to € 131.3 million.
- Profit after tax and minority interests climbed 5.2 % to € 46.9 million.
At € 885.4 million, revenue in the listed Port Logistics subgroup – which represents HHLA’s core business – was up 6.1 % on the previous year. The subgroup’s operating result (EBIT) increased by 11.5 % to € 120.0 million. Earnings per share rose by 3.2 % to € 0.59.
A pdf-version of the interim report is available at: Interim report January to September 2014
Hamburger Hafen und Logistik AG (HHLA) is a leading port logistics group in Europe. 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.
Torsten Engelhardt, Head of Corporate Communications; Phone +49-(0)40-3088-3503
Karl Olaf Petters, Spokesman; Phone +49-(0)40-3088-352