Hamburger Hafen und Logistik AG

Earnings Release • Aug 13, 2009

News Details

Corporate | 13 August 2009 08:00

Hamburger Hafen und Logistik AG: RESPECTABLE RESULT DESPITE SERIOUS ECONOMIC CRISIS

Hamburger Hafen und Logistik AG / Half Year Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

---

In the first half of 2009 the current economic crisis led to steep
downturns in total volumes, turnover and result at Hamburger Hafen und
Logistik AG (HHLA). Revenues were 24.1 percent lower at 501 million euros,
while operating result on continuing activities* fell by 51 percent to 95.1
million euros. Equity ratio at 40.4 percent remained at the previous year's
level.

'Despite a steep downturn in volumes handled and transported, in the first
half of 2009 Hamburger Hafen und Logistik AG (HHLA) succeeded in keeping
the fall in revenues within bounds, in achieving a nevertheless respectable
result and in keeping stable its sound balance sheet structure. This is all
the more remarkable in that HHLA is particularly affected by the
repercussions of the current world economic crisis,' stated Klaus-Dieter
Peters, chairman of the HHLA Executive Board, at the publication of HHLA's
interim report for the period January to June 2009. 'We shall resolutely
maintain this course during the months to come. We are thus in a position
to successfully overcome the current world recession should it persist and
at the same time to be prepared to actively embrace the opportunities of a
fresh upswing.'

Outlook
While stabilization at a low level in the trend of volumes transported and
handled has recently occurred, currently any clear signs of a sustained
recovery are lacking. Against this background, HHLA at present continues to
assume a substantial double-digit fall in volumes handled and transported
in 2009. Should no substantial recovery set in, to achieve sales revenues
in the region of one billion euros at group level for the year 2009 as a
whole would appear to be an ambitious goal. On the basis of its programme
of measures to reduce costs and to prolong investments, HHLA expects an
EBIT margin from continuing activities in a range of between 14 and 16
percent and thus achieving a distinctly positive operating result.

Market environment
It is especially the Far East as well as Central and Eastern Europe as
economic regions, which in recent years have decisively shaped the momentum
in the world economy that led to over-proportional growth in transport and
logistics chains via the Hamburg hub, that are reporting especially steep
losses during the current recession. Seaborne feeder services from HHLA's
Hamburg container terminals to Russia, Poland and the Baltic states slumped
by 49.8 percent, and services with the Far East by 30.7 percent. At 2.4
million standard containers (TEU), the total number of steel boxes handled
by HHLA's container terminals in Hamburg and Odessa (Ukraine), that was
also disproportionately hard hit by the recession, was 35.3 percent down on
the previous year (3.7 million TEU). By comparison, the downturn for HHLA's
transport companies was smaller: at 716,000 TEU, volume for hinterland
traffic was 23.5 percent below the previous year's (936,000 TEU).

Programme of measures
Designed to limit the repercussions of the crisis on profitability and jobs
and at the same time to secure the preconditions for taking up any future
options for growth, the programme of measures introduced at the beginning
of the economic crisis is already proving effective:

• In the first half of 2009, for instance, we succeeded in
  disproportionately reducing the costs of materials, inclusive of those for
  external staff. Despite the high proportion of fixed costs that is normal
  for the sector, savings in operating expenses of the order of altogether
  160 to 180 million euros are anticipated for the year 2009 as a whole.
• In view of the steep downturn in volumes, the volume of investments has
  been further staggered and reduced to a target figure of 220 million euros
  for 2009. At the same time, investments for long-term growth and for
  boosting efficiency, such as those for adapting to growing ship sizes, will
  be maintained unchanged.
• Since 1 July 2009, for the 3,500 staff at its Hamburg locations HHLA has
  been implementing its 'Securing the Future' project that combines training
  and short-time working in exemplary form. Around 350 individualized
  training courses are already definitely planned. Altogether over 2,000
  staff will be deployed on flexible, needs-related working, or wholly or
  temporarily on short-time working. Along with the reduction of utilization
  of external staff and the discontinuation of overtime, in the second half
  of 2009 for the Hamburg location this will probably result in a reduction
  of work volume by around 20 percent on the same period of the previous
  year.

A survey of key Group figures (January to June 2009)
- Revenues fell by 24.1 percent to 501.0 million euros.
- Earnings before interest, taxes, depreciation and amortisation (EBITDA)
fell by 39.9 percent to 143.7 million euros.
- Earnings before interest and taxes (EBIT) fell by 57.7 percent to 81.5
million euros.
- EBIT on activities maintained* (that excludes one-off expenditure on
restructuring and earnings from discontinued HHLA activities via Lübeck
into the Baltic region) fell by 51.0 percent to 95.1 million euros.
- At 43.7 million euros, earnings after tax were 64.3 percent below those
for the corresponding period of the previous year.
- Equity ratio as at 30.6.2009 was 40.4 percent.

In the first half of 2009 revenues of the publicly-quoted Port Logistics
sub-group, HHLA's core business, fell by 24.7 percent to 486.8 million
euros. EBIT on the maintained activities of the sub-group was 52.9 percent
lower at 88.5 million euros. The Port Logistics sub-group thus generated 97
percent of Group turnover and 93 percent of Group EBIT.

HHLA Group: Key Figures

                           1-6 I 2009         1-6 I 2008        Change

Revenues EUR million 501.0 660.0 -24.1%
EBITDA EUR million 143.7 239.1 -39.9%
EBIT EUR million 81.5 192.5 -57.7%
EBIT on continuing
activities* EUR million 95.1 193.9 -51.0%
Result after taxes EUR million 43.7 122.5 -64.3%
Result after taxes
and minority interests EUR million 25.7 89.0 -71.2%
Equity ratio in percent 40.4 40.2 +0.2 PP
Staff at 30.06. 4,859 4,738 +2.6%
Container throughput TEU 1,000 2,419 3,737 -35.3%
Containers transported TEU 1,000 716 936 -23.5%

Key figures for the (publicly quoted) Port Logistics sub-group

                          1-6 I 2009         1-6 I 2008        Change

Revenues EUR million 486.8 646.5 -24.7%
EBITDA EUR million 135.2 231.3 -41.5%
EBIT EUR million 74.9 186.4 -59.8%
EBIT on continuing
activities* EUR million 88.5 187.7 -52.9%
Results after taxes
and minority interests EUR million 22.8 86.8 -73.7%

* On account of the restructuring of business activities in the Intermodal
Segment, reporting for the HHLA Group has been extended by the inclusion of
a figure for earnings before interest and taxes (EBIT) on continuing
activities. In order to achieve transparency of presentation, the figure
quoted reflects EBIT that excludes both one-time expenditure on
restructuring and current earnings from two Group companies that have not
been classified as continuing activities.

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.

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: investor-relations@hhla.de

13.08.2009 Financial News transmitted by DGAP

Language: English
Issuer: 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: info@hhla.de
Internet: www.hhla.de
ISIN: DE000A0S8488
WKN: A0S848
Indices: MDAX
Listed: Regulierter Markt in Frankfurt, Hamburg; Freiverkehr in
Berlin, München, Hannover, Düsseldorf, Stuttgart

End of News DGAP News-Service

---