Earnings Release • Mar 31, 2009
Earnings Release
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Corporate | 31 March 2009 08:00
Hamburger Hafen und Logistik AG: HHLA WITH RECORD RESULT FOR THE FINANCIAL YEAR 2008
Hamburger Hafen und Logistik AG / Final Results
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Hamburger Hafen und Logistik AG (HHLA) set new records for revenue and
result in the financial year 2008. Revenue rose by 12.4 percent to 1,327
million euros, while the operating result (EBIT) improved by 23.4 percent
to 355 million euros. In view of the current economic crisis, for 2009 HHLA
expects a downturn in revenue and result, but a still profitable
development of business, and excludes any enforced operational redundancies
for 2009.
'In the financial year 2008 HHLA Group attained its ambitious goals and
achieved new records for revenue, result and return. The equity base was
also further strengthened. This is all the more remarkable in that the
economic environment became increasingly overcast in the course of the
year,' explained Klaus-Dieter Peters, HHLA Executive Board Chairman. 'The
outstanding result for the year 2008 forms a solid foundation for
confronting the challenges of the current economic crisis. Our dedicated
staff are one of the factors crucial for HHLA's success. We therefore at
present rule out any enforced operational redundancies.'
Increase in dividend recommended
HHLA's Executive and Supervisory Boards recommend to the Annual General
Meeting payment out of the distributable net profit of a dividend of 1.00
euro per share on the shares in the subgroup Port Logistics traded on the
Stock Exchange and accounting for 98 percent of HHLA's revenues. That
represents a 17.6 percent increase on the previous year's amount of 0.85
euros.
Successfully coming through difficult 2009 financial year
In view of the present economic crisis, HHLA expects a difficult financial
year in 2009, with downturns in volumes handled and transported, and in
revenue, result and returns. 'We are countering the current challenges with
a comprehensive programme of measures,' says Klaus-Dieter Peters, 'but will
not lose sight of our long-term expansion course in the process.' A package
of measures including deferral of the investment programme, rigorous costs
management and a programme to secure employment for HHLA staff is designed
to adapt performance and costs to the trend in demand. As seen today, HHLA
accordingly reckons on continuing to act profitably in the year 2009. HHLA
will be sustaining future growth opportunities by maintaining investments
in long-term growth and boosting efficiency, and also by an initiative on
staff training.
An overview of Group figures
In 2008 HHLA Group distinctly increased its revenue and result and once
again strengthened its balance sheet structure:
An overview of segment development
- Container segment. In the financial year 2008 HHLA's Container Terminals
in Hamburg and Odessa reported no more than slight growth in volume handled
by 1.2 percent to 7.3 million standard containers (previous year: 7.2
million). This is the result of the marked slackening during the course of
the year of the momentum behind volumes, which in the fourth quarter
resulted in a 9.7 percent fall (compared to the fourth quarter of 2007). By
contrast, revenue and result were significantly higher. Segment revenue,
for instance, improved by 14.4 percent to 792 million euros (previous year:
693 million euros), while the segment result (EBIT) rose by 22.6 percent to
304 million euros (previous year: 248 million euros). The segment accounts
for 60 percent of Group revenues.
Intermodal segment. Despite a similar slackening of the momentum behind
volumes during the year, the transport companies once again succeeded in
boosting volume, revenue and result. The number of standard containers
(TEU), primarily transported by rail and truck, increased by 11.5 percent
to 1.8 million TEU (previous year: 1.7 million TEU). Segment revenue was up
by 11.4 percent at 370 million euros (previous year: 332 million euros).
With an operating result (EBIT) of 39 million euros, the previous year's
figure of 37 million euros was exceeded by 5.1 percent. The segment
accounts for 28 percent of Group turnover.
Logistics segment. In an uneven market environment, segment revenue
increased by 7.1 percent to 127 million euros (previous year: 119 million
euros). The segment result (EBIT) fell on account of an extraordinary
depreciation of 2.3 million euros by 17.9 percent to 10.4 million euros
(previous year: 12.7 million euros). The segment accounts for 9 percent of
Group revenue.
Real Estate segment. With revenue increased by 5.8 percent to 33 million
euros (previous year: 31 million euros), the segment result (EBIT) rose by
32.2 percent to 14 million euros (previous year: 10 million euros),
primarily thanks to the successful marketing of recently developed
properties. The segment corresponds to the Real Estate subgroup, which is
not listed on the stock exchange and accounts for 2 percent of Group
revenue.
Programme of measures and forecast for 2009
The recession in the world economy that was already setting in during the
fourth quarter of 2008 was intensified further at the beginning of 2009. In
view of the current trend, for 2009 HHLA is assuming shrinkage in world
trade and distinct downturns in container traffic, especially in the
Asia-Europe trades as well as inner-European volumes transported to Central
and Eastern Europe. Against this background and as matters stand at
present, on 2009 as a whole the Group expects distinct double-digit
declines in volumes handled and transported. At the same time, HHLA assumes
that the fundamental trend towards globalization with ever stronger
intermeshing of the world economy, as well as the growth of worldwide goods
flows involved, will remain.
HHLA's programme of measures is aimed, firstly at adapting costs and
services flexibly to the current trend in demand, and secondly at keeping
an eye on future opportunities for growth. The current programmes mounted
to boost the economy and infrastructure by Federal and state governments
make an important contribution towards future growth in that by improving
the seaward and shore links of German seaports, they will help to close the
gap between existing and required infrastructure. Above all, this involves
the implementation as rapidly as possible of the planned deepening of the
navigation channel of the Outer and Lower Elbe, something that in view of
the current trend in ship sizes is overdue.
In HHLA's investment programme for the period from 2009 until 2012,
therefore, investments for the realization of long-term growth
opportunities (e.g., strengthening of quay walls, extension of berths) will
be continued. Similarly, investments will continue in boosting efficiency,
and especially in those contributing to adaption to the trend in ship
sizes. By contrast, investments in short-term increases in capacity will be
adjusted, e.g., by cancelling or postponing the expansion of container
storage blocks and the acquisition of new equipment. This will enable
deferral of approximately 600 million euros of the 1.2 billion euros
originally to be invested between 2009 and 2012 until the period following
2012.
To reduce the costs of materials, HHLA will adjust purchases of outsourced
services to foreseeable demand. Lower level of prices for fuel and energy
are currently reducing costs.
The extraordinary flexibility of human resources deployment - typified by
the very high contribution of overtime and of agency staff to total
workforce output during the growth phase so far - is enabling personnel
costs to be adjusted to demand. Overtime at HHLA is being reduced or offset
by leisure. These measures are being supplemented by an increase in the
flexibility of working hours and the use of working hours accounts.
In addition, HHLA is launching a training initiative for members of its
staff. This will involve a combination of training measures and short-time
working. This will assist in comprehensively safeguarding employment.
'Safeguarding employment and training measures are the two main
cornerstones of our strategy of countering the double challenge of
mastering the current crisis and at the same time maintaining our
opportunities for the future, with a coordinated scheme,' states
Klaus-Dieter Peters, HHLA Executive Board Chairman. 'For the year 2009, on
the basis of what we know at present, we are reckoning with distinct falls
in revenue, result and return, but overall again to be operating at a
profit.'
HHLA Group key figures
2008 2007 Change
Revenues EUR million 1,326.8 1,180.0 12.4 %
EBITDA EUR million 456.8 378.7 20.6 %
EBIT EUR million 355.1 287.6 23.4 %
Profit after tax EUR million 217.5 152.0 43.1 %
Profit after tax and
minority interests EUR million 160.4 111.3 44.1 %
Equity ratio in % 42.3 38.4 3.9 pp
Employees as of 31 December 5,001 4,565 9.6 %
Stock exchange listed Port Logistics subgroup
2008 2007 Change
Revenues EUR million 1,299.2 1,152.4 12.7 %
EBITDA EUR million 439.4 364.6 20.5 %
EBIT EUR million 341.3 277.0 23.2 %
Earnings after tax EUR million 211.7 149.1 41.9 %
Earnings after tax and
minority interests EUR million 154.5 108.4 42.5 %
Container throughput
Thousand TEU 7,317 7,229 1.2 %
Container transport
Thousand TEU 1,841 1,651 11.5 %
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: [email protected]
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: [email protected]
Internet: www.hhla.de
ISIN: DE000A0S8488
WKN: A0S848
Indices: MDAX
Listed: Regulierter Markt in Frankfurt, Hamburg; Freiverkehr in
Berlin, Hannover, Stuttgart, München, Düsseldorf
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