Hamburger Hafen und Logistik AG

Earnings Release • Nov 12, 2009

News Details

Corporate | 12 November 2009 08:00

Hamburger Hafen und Logistik AG: REMARKABLE RETURN DESPITE ONGOING ECONOMIC CRISIS

Hamburger Hafen und Logistik AG / Interim Report

12.11.2009

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Despite the most serious economic crisis of the post-war era, in the first
nine months of 2009 Hamburger Hafen und Logistik AG (HHLA) generated a
return well into double figures and confirmed its forecast for the year as
a whole. Revenues were admittedly 25.8 percent lower at 746 million euros,
and operating result* was 50.5 percent down at 143.6 million euros.
However, with a margin on results** of 19.3 percent, HHLA continued to
demonstrate the profitability of its successful business model. Equity
ratio at 41.9 percent remained at the previous year's high level.

'We have achieved a remarkable result. After all, it is especially those
markets in which we had in recent years enjoyed outstandingly dynamic
growth that have collapsed disproportionately as a result of the economic
crisis,' stated Klaus-Dieter Peters, chairman of HHLA's executive board,
when presenting HHLA's interim report for the period January to September
2009. 'Along with our cost-reduction measures and our comprehensive
training programme, our timely measures to adapt in cargo handling, port
logistics and hinterland transport, are putting HHLA in a position to
continue successfully weathering the challenges of this economic crisis. We
shall therefore be actively grasping the opportunities inherent in the
forthcoming economic recovery,' said Peters. In an especially difficult
economic situation, moreover, HHLA has succeeded in maintaining the Group's
financial stability at a high level.

Outlook
Volumes handled and transported recovered slightly in the third quarter,
thus confirming an impression that the economy is regaining a firm footing.
'For the next few months, however, we are reckoning with an at most
moderate upswing,' said Peters. In view of the continuing difficult
economic environment and in all probability of a weaker fourth quarter for
seasonal reasons, HHLA anticipates that in the year 2009 as a whole,
volumes handled at its container terminals in Hamburg and Odessa will
probably be over 30 percent lower than the previous year's record figures,
with volumes transported on hinterland services over 20 percent lower. To
generate turnover of one billion euros at group level for the year as a
whole accordingly remains very ambitious. Nevertheless, HHLA expects that
EBIT margin on continuing activities will be running at the upper end of
the forecast range of between 14 and 16 percent.

A survey of essential Group figures (January to September 2009)
- Revenues fell by 25.8 percent to 746 million euros.
- Earnings before interest, taxes, depreciation and amortisation (EBITDA)
fell by 40.4 percent to 215.1 million euros.
- Earnings before interest and taxes (EBIT) fell by 55 percent to 130
million euros.
- Earnings on activities maintained (EBIT excluding one-off expenditure on
restructuring and the operating result from the Group companies combisped
and CTL, that are classified as 'activities not maintained', have been
disposed of and deconsolidated) fell by 50.5 percent to 143.6 million
euros.
- At 72.1 million euros, earnings after tax were 61 percent below those for
the corresponding period of the previous year.
- Equity ratio as at 30.9.2009 was 41.9 percent.

In the first nine months of 2009 revenues of the publicly-quoted Port
Logistics subgroup, HHLA's core business, fell by 26.4 percent to 724.8
million euros. EBIT from the continuing activities of the subgroup was 52.6
percent lower at 133.1 million euros. The Port Logistics subgroup thus
generated 97.0 percent of Group turnover and 93.0 percent of Group EBIT.

Market trends
As Europe's leading hub for the exchange of goods with Asia, as well as
Central and Eastern Europe, the Port of Hamburg was especially hard hit by
the global economic crisis. The reason is the disproportionate downturn in
exchange of goods with these regions that had enjoyed such rapid growth in
recent years. Container traffic between Asia and Europe in the first eight
months of 2009, for instance, was 22 percent down on the same period of the
previous year. Container throughput of ports in the Baltic region fell by
as much as 50 percent and more - in the Port of St. Petersburg, for
example.
On top of this come the consequences of the deepest-ever crisis in
container shipping generally. For instance, serious overcapacities caused a
drop of up to 80 percent in charter rates for feederships. In combination
with low fuel costs, feeder services from Benelux ports around the northern
tip of Denmark and into the Baltic region can therefore be seen as
commercially viable. For the moment, this attenuates the Port of Hamburg's
geographical advantages. The volume downturn at HHLA's container terminals
in Hamburg was therefore correspondingly steep. By comparison with the same
period of the previous year, throughput in Hamburg and Odessa in the first
nine months of 2009 was 34.8 percent lower at 3.685 million standard
containers (TEU).

Programme of measures
Against this difficult economic background, HHLA has concentrated on
limiting the negative repercussions of the crisis on jobs and group
profitability. At the same time, HHLA Executive Board's top priority
remains to use comprehensive adaptation measures to create the capability
to actively grasp growth opportunities in the event of a recovery in the
world economy.

• Being implemented by HHLA for its 3,500 staff at its Hamburg base since
  the beginning of July, the Securing the Future project is setting the pace
  for the whole of Germany. This secures jobs with the aid of short-time
  working as one measure, reduces costs and at the same time facilitates
  forward-looking human resources development. More than 350 individualized
  training courses, mainly for the professional qualifications Certified
  Specialist for Port Logistics and Certified Specialist for Port Operations,
  have already started. Flexible use of needs-related short-time working for
  over 2,000 HHLA staff in Hamburg since 1 July 2009 has also proved its
  value. Along with the reduction in the deployment of external staff, the
  elimination of overtime and the introduction of part-time work for older
  staff, in the second half of 2009 the volume of work at the Hamburg
  locations will have been reduced by at least 20 percent on the previous
  year's.

• Investments have once again been spread over a longer period on account
  of the difficult economic climate, and reduced to around 180 million euros
  for the year as a whole from the intially planned total of 355 million
  euros. Investments in boosting efficiency of container handling, for
  example in adjusting to growing ship sizes, are being maintained unchanged
  to facilitate future growth.

• For the first nine months of the year, HHLA has succeeded in cutting
  expenses on materi-als, including those for the use of external staff, by
  over 30 percent. Despite the high propor-tion of fixed costs customary in
  the industry, for the year as a whole savings on operating expenditure of
  altogether 160 to 180 million euros on the previous year will be
  attainable.

* Operating result from continuing activities (EBIT excluding one-off
restructuring charge and the operating result from the discontinued Group
companies combisped and CTL, the former of which has been disposed of and
deconsolidated)
** Relating to the operating result from continuing activities.

HHLA Group: Key figures

                        1-9 I 2009     1-9 I 2008     Change

Revenue EUR million 746.0 1005.3 -25.8%
EBITDA EUR million 215.1 360.8 -40.4%
EBIT EUR million 130.0 288.6 -55.0%
EBIT from continuing
activities* EUR million 143.6 290.1 -50.5%
Profit after tax EUR million 72.1 184.9 -61.0%
Profit after tax and
minority interests EUR million 45.6 137.8 -66.9%
Equity ratio in % 41.9 41.9 0.0%
Employees as at 30.09.2009 4,778 4,902 -2.5%
Container throughput TEU '000 3,685 5,652 -34.8%
Container transport TEU '000 1,112 1,420 -21.7%

Port Logistics subgroup (stock exchange listed): Key figures

                        1-9 I 2009    1-9 I 2008      Change

Revenue EUR million 724.8 984.8 -26.4%
EBITDA EUR million 201.7 348.9 -42.2%
EBIT EUR million 119.5 279.3 -57.2%
EBIT from continuing
activities* EUR million 133.1 280.9 -52.6%
Profit after tax and
minority interests EUR million 40.9 134.0 -69.4%

*EBIT excluding one-off restructuring charge and the operating result from
the discontinued Group companies combisped and CTL, the former of which has
been disposed of and deconsolidated

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

12.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

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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: 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

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