Earnings Release • Mar 30, 2012
Earnings Release
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Corporate | 30 March 2012 08:00
Hamburger Hafen und Logistik AG: HHLA to Increase Dividend Substantially Following Rise in Revenue and Profit
Hamburger Hafen und Logistik AG / Key word(s): Final Results
30.03.2012 / 08:00
HHLA to Increase Dividend Substantially Following Rise in Revenue and Profit
– Container throughput up by 21.3 %, container transport up by 11.3 %
– HHLA's market share in container throughput grows
– Profit after tax and minority interests rises 17.1 %
– Proposal to increase dividend by 18.2 % to EUR 0.65 per listed Class A share
– Outlook: HHLA aims to continue to grow faster than the market
Hamburger Hafen und Logistik AG (HHLA) experienced above-average growth in its core markets in the 2011 financial year, increasing both its revenue and its results considerably. Container throughput rose by 21.3 percent to 7.1 million standard containers (TEU), and container transport went up by 11.3 percent to 1.9 million TEU. Revenue grew by 14.0 percent to EUR 1,217.3 million, while the operating result (EBIT) improved by 7.3 percent to EUR 207.0 million. Profit after tax and minority interests improved by 17.1 percent to EUR 89.3 million. For the 2012 financial year, HHLA expects its container throughput, revenue and results to grow in the region of 5 percent.
'We are very satisfied with the 2011 financial year. In a challenging market environment, we grew faster than our major competitors and increased our revenue and results considerably,' explained Klaus-Dieter Peters, Chairman of HHLA's Executive Board, with the presentation of the annual financial statements for 2011. 'Given the growth in surplus capacity at the terminals of rival ports in Northern Europe, the difficult situation for container shipping as a whole and the protracted delay in the dredging of the river Elbe's navigation channel, this is a remarkable achievement.' The market share of the HHLA Container Terminals, measured in terms of the total container throughput at the ports of Rotterdam, Hamburg, Antwerp and the Bremen ports, rose from 17.4 percent in 2010 to 19.3 percent in 2011.
HHLA achieved its revenue forecast for 2011 in full, a forecast that had been lifted over the course of the year. In light of the unexpectedly strong volume growth and the subsequent increase in peak loads in container handling, together with the expansion projects pursued in parallel at the terminals, the initial target to improve the operating margin could not be achieved. Further pressure on the results was caused by the delayed dredging of the river Elbe's navigation channel. Despite additional burden by impairment charges, the company nevertheless exceeded its slightly downgraded earnings forecast. Earnings per share for the listed Port Logistics subgroup rose by 20.2 percent to EUR 1.20.
Proposal of dividend increase to EUR 0.65
On the basis of this sound earnings performance, the Executive Board and Supervisory Board of HHLA will propose at the Annual General Meeting on 14 June 2012 to increase the dividend. The proposal follows the consistent, earnings-based dividend policy adopted to date. For the listed Class A shares in the Port Logistics subgroup, which accounts for 98 percent of HHLA's revenue, a dividend from net profit for the 2011 financial year of EUR 0.65 per dividend-entitled share shall be paid. This corresponds to a year-on-year increase of 18.2 percent and a pay-out ratio of 54.1 percent of the relevant annual net profit.
Business forecast 2012: growth in the region of 5 percent on considerably slowing global economic development
Based on the events of the year to date and current market estimates, it is expected that 2012 will see a substantial decline in global economic growth and with it, a slowdown in global trade and container handling. At present, Northern Europe is expected to see growth in container throughput of between one and two percent, while the transport volume in Germany is forecast to be between two and three percent for 2012. Should there be no change in the current development of the global economy, which is slowing down considerably but is still growing, and if work can begin promptly on dredging the river Elbe's navigation channel, HHLA expects growth to be above-average once again with throughput, transport, revenue and results all in the region of 5 percent. Liner services operated by the new partnership of CMA CGM, MSC and UASC as well as the G6 Alliance are expected to contribute to this, as they have decided to make use of HHLA's services respectively continue their long-standing relationship with HHLA.
Capital resources improved further
In the financial year ended, HHLA improved its solid balance sheet structure further, building on its comfortable cash position. The equity ratio increased to 35.6 percent (previous year: 33.1 percent). Cash flow from operating activities (cash inflow) rose to EUR 266 million (previous year: EUR 207 million). The return on capital employed (ROCE) grew to 15.4 percent (previous year: 14.6 percent), thus once again increasing the enterprise value.
Integrated business model fosters successful course for growth
The pace of growth at HHLA's Hamburg container terminals was mainly driven by the volume dynamics in the shipping regions Far East (+ 19 percent) and Eastern Europe/Baltic Sea (+ 49 percent) in the 2011 financial year. North American traffic experienced particularly notable growth of over 50 percent thanks to new liner services to Hamburg. HHLA benefited from the economic recovery in Central and Eastern Europe, the strong growth in Asia and rising exports from North America. Already at a high level, HHLA's hinterland transportation, which is largely rail-based and runs from and to Hamburg and other European ports, grew noticeably in the year with an increase of over 11 percent, reaching a new record level with 1.9 million standard containers.
HHLA achieved this successful development by making further investments in improving its range of services, expanding its hinterland network and further developing its operating processes in 2011. These activities include:
– The expansion of mega-ship berths at the Burchardkai and Tollerort terminals
– The opening of two inland terminals in Poland (Poznán) and the Czech Republic (Ostrava)
– The opening of the new Munich site in Germany for trucking services
– Investments in own traction (locomotives for HHLA's rail subsidiary Metrans)
This year HHLA will continue to expand its competitive position by making investments in its container terminals and expanding its hinterland network. The focus will be on the expansion of the Container Terminal Burchardkai (storage blocks, container gantry cranes, straddle carriers) and the Container Terminal Odessa (construction of large-ship berths). In the hinterland, HHLA subsidiary Metrans is expanding its transport network in Central and Eastern Europe with the construction of a new hub terminal in the Czech Republic (Česká Třebová) and the acquisition of additional rail wagons and locomotives.
HHLA receives awards for its commitment to sustainability
HHLA continued its efforts to achieve its sustainability targets with numerous measures in 2011. For its success in the pilot project 'Zero Emissions', which involves operating battery-powered transport vehicles at the HHLA Container Terminal Altenwerder (CTA), HHLA and vehicle manufacturer Gottwald Port Technology were presented with the Hanse Globe sustainability award. In the summer of 2011, solar power units were installed on the roofs of the Logistics Centre Altenwerder and the service center of the Container Terminal Tollerort (CTT); they already produced around 210,000 kWh of electricity in 2011. Since 2008, HHLA has reduced its specific CO 2 emissions by 21 percent. By 2020, the objective is to achieve a reduction of 30 percent in total. In a study released by the renowned Fraunhofer SCS research institute in May 2011, HHLA was identified as one out of six 'pioneers in sustainability' in the German logistics sector. HHLA was commended for its 'outstanding level of sustainability'.
Development of the Group key figures for the 2011 financial year at a glance
– Revenue rose by 14.0 % to EUR 1,217.3 million.
– The operating result (EBIT) came in at EUR 207.0 million – a 7.3 % increase on the previous year's figure.
– Profit after tax rose by 4.3 % to EUR 118.8 million.
– Profit after tax and minority interests was up by 17.1 % to EUR 89.3 million.
– Cash flow from operating activities recorded growth of 28.6 % to EUR 266.1 million.
– The equity ratio improved from 33.1 % to 35.6 %.
– Earnings per share amounted to EUR 1.20 for the listed Port Logistics subgroup in 2011, a year-on-year increase of 20.2 %.
– A proposal will be made at the 2011 Annual General Meeting to pay out a dividend of EUR 0.65 per Class A share. This corresponds to a dividend pay-out ratio of 54.1 percent and an increase of 18.2 % compared with the previous year.
The listed Port Logistics subgroup , in which HHLA's core business is pooled, reported revenue of EUR 1,190.6 million in 2011 (+ 14.2 percent) and EBIT of EUR 194.8 million (+ 8.3 percent). This meant that the Port Logistics subgroup generated 97.6 percent of Group revenue and 94.1 percent of Group EBIT.
Key Figures HHLA Group
| in EUR million | 2011 | 2010 | Change |
| Revenue | 1,217.3 | 1,067.8 | 14.0 % |
| EBITDA | 333.4 | 306.9 | 8.7 % |
| EBIT | 207.0 | 192.9 | 7.3 % |
| EBIT margin in % | 17.0 | 18.1 | – 1.1 pp |
| Profit after tax | 118.8 | 113.9 | 4.3 % |
| Profit after tax and minority interests | 89.3 | 76.2 | 17.1 % |
| Container throughput in thousand TEU | 7,087 | 5,844 | 21.3 % |
| Container transport in thousand TEU | 1,887 | 1,696 | 11.3 % |
| 31.12.2011 | 31.12.2010 | Change | |
| Equity ratio in % | 35.6 | 33.1 | 2.5 pp |
| Employees | 4,797 | 4,679 | 2.5 % |
Key Figures Port Logistics Subgroup
| in EUR million | 2011 | 2010 | Change |
| Revenue | 1,190.6 | 1,042.8 | 14.2 % |
| EBITDA | 317.3 | 290.1 | 9.4 % |
| EBIT | 194.8 | 179.9 | 8.3 % |
| EBIT margin in % | 16.4 | 17.3 | – 0.9 pp |
| Profit after tax and minority interests | 84.0 | 69.9 | 20.2 % |
| Dividend in EUR per Class A share* ) | 0.65 | 0.55 | 18.2 % |
* ) Dividend proposal for 2011
About HHLA
Hamburger Hafen und Logistik AG is one of Europe's leading port logistics groups. With its Container, Intermodal and Logistics segments, HHLA is vertically aligned along the entire transport chain. Efficient container terminals, high-performance transport systems and comprehensive logistics services form a complete network between the international port and the European hinterland.
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| Language: | English |
| Company: | Hamburger Hafen und Logistik AG |
| Bei St. Annen 1 | |
| 20457 Hamburg | |
| Germany | |
| 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 (Prime Standard), Hamburg; Freiverkehr in Berlin, Düsseldorf, Hannover, München, Stuttgart |
| End of News | DGAP News-Service |
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| 163049 30.03.2012 |
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