Tuesday, August 20, 2013

Freight Forwarding and Logistics Arm of Maersk Publishes Financial Results

Half Year Figures from Damco Issued
Shipping News Feature

NETHERLANDS – WORLDWIDE – Global freight forwarder and logistics services provider Damco has announced it half year financial results, which sees the Maersk subsidiary adding revenue in what the company describes as ‘a difficult market’. The Hague based company reported an increase in total revenues from $1,522 million in the first 6 months of 2012, to $1,531 million for the first half of 2013 and a post tax operating loss of $2 million.

Underlying EBITA before special items in the first half of 2013 fell 29% to $24 million, compared to $34 million in the same period last year. The company says that this was slightly less than anticipated, caused by higher-than-planned costs to strengthen and prepare the organisation for ‘the future in a number of the growth markets’.

Year-on-year growth remains healthy with air freight volumes seeing a significant increase of 13.8%, from 85,723 tonnes in the first half of 2012 to 97,539 in the same period this year, outperforming the market and continuing the upward trend the company has been observing following the acquisition of the Chinese freight forwarder, NTS. Supply chain management volumes grew 9.9% to 24,769 cubic metres compared to 22,530 cubic metres in 2012, whilst sea freight volumes down 0.5% from 389,475 TEU in the first half of 2012 to 387,487 TEU in the first 6 months of 2013. CEO Rolf Habben-Jansen commented:

"In weak markets we continue to invest in building the future with special focus on expanding our geographical coverage and rolling out our new global freight management system. This is needed to enable future growth and to optimise our cost to serve. We will start seeing the benefits from this later this year and expect to see solid year-on-year improvements in the results from Q4 2013 onwards.”

In the upcoming quarters Damco says it does not anticipate a major improvement in the overall market situation and issued a statement saying that it will remain fully focused on further improving and extending the services to customers to enable them to benefit from the investments made by the company in the recent quarters intended to boost efficiency.