Earnings Release • Mar 31, 2011
Earnings Release
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Corporate | 31 March 2011 08:02
Hamburger Hafen und Logistik AG: HHLA INCREASES MARKET SHARE AND PROFIT
Hamburger Hafen und Logistik AG / Key word(s): Final Results
31.03.2011 / 08:02
Hamburger Hafen und Logistik AG (HHLA) took advantage of the global
economic recovery in the 2010 financial year with strong growth in its
operating performance and earnings. Container throughput rose by 19.0 % to
5.84 million TEU. Container transport went up by 13.1 % to 1.70 million
TEU. HHLA Group revenue climbed by 8.3 % to EUR 1,073.1 million and the
operating result (EBIT) improved by 20.4 % to EUR 192.9 million. For the
2011 financial year, HHLA is expecting an increase of throughput and
transport volumes in the region of 10 %.
Hamburg, 31 March 2011. '2010 went very well for our company. This is
visible in market share gains thanks to above-average growth in container
throughput and the success of our hinterland systems, which in some cases
reported new record volumes. We achieved the revenue forecast, which was
raised over the course of 2010, and even slightly exceeded our earnings
forecast,' said Klaus-Dieter Peters, Chairman of the Executive Board of
HHLA, commenting on the publication of the annual financial statements for
2010. Earnings per share for the publicly listed Port Logistics subgroup
rose by 49.3 % to EUR 1.00.
Increased dividend of EUR 0.55 proposed
On the basis of this sound earnings performance, the Executive Board and
Supervisory Board of HHLA will put forward a proposal to increase the
dividend at the Annual General Meeting on 16 June 2011. The proposal
follows the consistent, earnings-based dividend policy adopted to date. The
publicly traded shares in the Port Logistics subgroup, which accounts for
97 % of HHLA revenue, are to receive a dividend from net profit for the
2010 financial year of EUR 0.55 per dividend-entitled share. This is an
increase of 37.5 % compared with the previous year and corresponds to 55.1
% of profit after tax and minority interests.
Business outlook for 2011: good chances of further growth
The strong recovery in the 2010 financial year forms a good basis for
HHLA's current and future performance. Even though economic growth is
likely to slow in the current year as pent-up demand gradually ebbs away,
HHLA is expecting an increase in its throughput and transport volumes in
the region of 10 % for 2011. As competition remains fierce, HHLA is
pursuing an ambitious target of achieving revenue growth in line with
volume increases and improving its EBIT margin at the same time. Achieving
these targets is subject to certain conditions, namely that the global
economy continues to stabilize as it did before the dramatic events in
Japan and Libya respectively the Middle East and North Africa took place.
Given the increasing size of container ships, it is also required that the
timetable announced for dredging the navigation channel of the river Elbe
is met.
HHLA capitalizes on the economic recovery
The sustained global economic revival and the normalization of the
environment for European feeder traffic in the Baltic Sea were important
conditions for HHLA's success in the 2010 financial year. The recovery in
charter rates for feeder ships and the increase in fuel costs meant that
the geographic advantages of the Port of Hamburg for transport links were
more keenly felt. This made a major contribution to the shift in feeder
services away from the Benelux ports and back to the HHLA terminals in
Hamburg.
HHLA made active use of this sustained improvement in the business
environment with its own investments and innovations. They included:
- the completion of new mega-ship berths in Hamburg,
- the improvement in terminal performance by means of constant process
optimization (automatic vehicles can now carry two 20-foot containers at
the same time) and new equipment (tandem gantry cranes capable of handling
two 40-foot containers in a single movement),
- the successful work of the feeder coordination center (Feeder Logistik
Zentrale - FLZ) at the Port of Hamburg,
- the extension of the hinterland network for container traffic, for
example by opening a modern inland terminal at Katowice in Poland and
extending shuttle and direct rail connections on many routes.
Course set for further growth
At the same time, HHLA launched a number of projects in 2010 intended to
secure and extend its leading position in terminal performance and
seaport-hinterland traffic (containers) in the future. They included:
- the establishment of a joint venture - IPN Inland Port Network - with
Eurogate to pave the way for the construction of a network of modern inland
terminals that meet the quality standards of maritime logistics for
Germany,
- the establishment of the joint venture CIT Container Inland Trucking with
the Bremen-based transport company EKB, which is to offer a comprehensive
network for container transport on the 'last mile' between the inland
terminal and the customer,
- the realization of additional inland terminals in Poland and the Czech
Republic,
- the continued expansion and modernization programmes at HHLA's container
terminals.
Eyes set on climate protection and sustainable development
The activities and goals of HHLA's sustainability programme are closely
linked with its business model. In the 2010 financial year, this could be
seen in:
- the steadily rising share of rail traffic in container hinterland
transport from the HHLA terminals in Hamburg to 37 % (2002 still at 28 %),
- the reduction of CO2 emissions from HHLA's facilities by a total of
30,000 tons or 27 % since 2008 and by 16 % per container of throughput,
- the successful training programme (480 individual courses in Hamburg),
- the high 'macroeconomic value added' expressed in HHLA's value creation
of EUR 502.1 million in the 2010 financial year.
Overview of 2010 annual results
Improved return thanks to better performance
Despite intense competition in all segments and idle capacity on the
market, HHLA was able to keep cost increases well below those in volumes,
thereby improving profitability. The return on revenue (EBIT margin) rose
from 16.2 % to 18.0 % and the return on capital employed (ROCE) went up by
0.5 percentage points to 14.6 %.
Decline in equity ratio
Despite the HHLA Group's gratifying operating performance, the equity ratio
is down on the previous year. The reason is a reduction in minority capital
due to the recognition of conditional future compensation payments. Without
this special item, the equity ratio would have come to 40 %; after the
recognition it came to 33 % as of 31.12.2010.
Changes in key figures
- Revenue rose by 8.3 % to EUR 1,073.1 million.
- The operating result (EBIT) increased by 20.4 % to EUR 192.9 million and
EBIT from continuing activities climbed 7.3 % to EUR 190.7 million.
- The EBIT margin reached 18.0 % (previous year: 16.2 %), and the EBIT
margin from continuing activities came in at 17.8 %.
- Profit after tax rose by 27.8 % to EUR 113.9 million.
- Profit after tax and minority interests was up by 43.7 % to EUR 76.2
million.
- Free cash flow (cash flow from operating and investing activities)
quadrupled to EUR 150.7 million.
- The equity ratio fell from 40 % to 33 % due to the recognition of
conditional future financial settlements to a minority shareholder.
- Earnings per share for the publicly listed Port Logistics subgroup came
to EUR 1.00.
- A proposal will be made at the 2011 Annual General Meeting to distribute
a dividend of EUR 0.55 per share. This corresponds to a dividend ratio of
55.1 % and an increase of 37.5 % compared with the previous year.
The publicly listed Port Logistics subgroup, in which HHLA's core business
is pooled, reported revenue of EUR 1,044.1 million in 2010 (+ 8.4 %) and
EBIT of EUR 179.9 million (+21.8 %).
Key figures for the HHLA Group
2010 2009 Change
Revenue EUR million 1,073.1 990.7 8.3 %
EBITDA EUR million 306.9 277.5 10.6 %
EBIT EUR million 192.9 160.2 20.4 %
EBIT margin in % 18.0 16.2 1.8 pp
Profit after tax EUR million 113.9 89.1 27.8 %
Profit after tax and
minority interests EUR million 76.2 53.0 43.7 %
Equity ratio in % 33.1 40.0 - 6.9 pp
Employees as of 31.12. 4,679 4,760 - 1.7 %
Container throughput thousand TEU 5,844 4,913 19.0 %
Container transport thousand TEU 1,696 1,500 13.1 %
Key figures for the Port Logistics subgroup (publicly listed)
2010 2009 Change
Revenue EUR million 1,044.1 962.9 8.4 %
EBITDA EUR million 290.1 261.1 11.1 %
EBIT EUR million 179.9 147.7 21.8 %
EBIT margin in % 17.2 15.3 1.9 pp
Profit after tax and
minority interests EUR million 69.9 46.7 49.6 %
Dividend * EUR/share 0.55 0.40 37.5 %
* 2010: Dividend proposal
About HHLA
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.
Contact:
Matthias Funk
Investor Relations
HAMBURGER HAFEN UND LOGISTIK AG
Bei St. Annen 1, D-20457 Hamburg, www.hhla.de
Tel: +49-40-3088-3397
Fax: +49-40-3088-3339
E-mail: [email protected]
End of Corporate News
31.03.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Hamburger Hafen und Logistik AG
Bei St. Annen 1
20457 Hamburg
Deutschland
Phone: +49 (0)40-3088-1
Fax: +49 (0)40-3088-3355
E-mail: [email protected]
Internet: www.hhla.de
ISIN: DE000A0S8488
WKN: A0S848
Listed: Regulierter Markt in Frankfurt, Hamburg; Freiverkehr in
Berlin, Düsseldorf, Hannover, München, Stuttgart
117702 31.03.2011
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