TUI AG, the parent company of Hapag Lloyd and CP Ships, says that earnings (EBITA) from its two core divisions of shipping and tourism fell in the third quarter of 2006 to EUR529 million (US$910.76 million), down from EUR708 million for the corresponding prior year period.Third quarter group profit attributable to shareholders therefore dropped drastically to EUR273 million, down from EUR573.6 million for the three month period to the end of September a year ago. During the reporting period turnover from the group's continuing operations grew by 8.3 per cent year on year to EUR6.74 billion. A breakdown of the results by segment shows that the shipping division suffered a loss of EUR25 million (US$32.16 million), compared to operating earnings (EBITA) of EUR95 million for the third quarter of 2005. The dramatic decline in earnings came on the back of falling freight rates, particularly on the Asia trade lanes, as well as higher costs year on year in all trade lanes.
The comparatively weaker performance from the shipping unit comes despite an increase in turnover of 73 per cent to EUR1.51 billion. The growth in turnover in the third quarter of this year was largely attributed, in a group statement, to the integration of CP Ships, which the company says has virtually been completed.
The comparatively weaker performance from the shipping unit comes despite an increase in turnover of 73 per cent to EUR1.51 billion. The growth in turnover in the third quarter of this year was largely attributed, in a group statement, to the integration of CP Ships, which the company says has virtually been completed.