Hamburger Hafen und Logistik AG reports profit for 2007
Operating earnings (EBIT) of HHLA in 2007 leapt by 32 percent to 288 million euros. At 27.4 percent (previous
year: 24.4 percent), return on capital employed (ROCE) reached a new peak. Double-digit growth in revenues is expected once again for fiscal 2008.
“HHLA looks back on an extremely successful financial year 2007. We have maintained our highly successful growth course with strong increases in revenues, result and return,” declared Klaus-Dieter Peters, Chairman of HHLA Executive Board. “The successful stock flotation on 2 November 2007 puts us in a position to implement our ambitious expansion programme swiftly and systematically. This is flanked by a comprehensive investment programme by the City of Hamburg in the expansion and modernization of Port of Hamburg infrastructure.
That will enable HHLA to continue to actively exploit the opportunities arising from the sustained growth momentum of global logistics chains.”
For the shares traded on the stock exchange in the Port Logistics sub-group, accounting for 98 percent of HHLA revenues, for the 2007 financial year HHLA’s Executive Board and Supervisory Board will recommend to the Annual General Meeting a dividend payment of 85 eurocents per entitled share.
Double-digit revenue growth expected for 2008 In a market environment that has remained good until now, the
favourable business trend has persisted in the first few months of 2008. For Northern Europe research institutes forecast an increase in container throughput of around 10 percent for the year 2008 as a whole.
HHLA therefore reckons with a continuation of its profitable growth course during the current expansion programme. “On the basis of the trend so far,” says HHLA Chief Executive Officer Klaus-Dieter Peters, “we expect renewed double-digit growth in revenues for the financial year 2008 and total revenues of around 1.3 billion euros. Operating result (EBIT) at Group level should for the first time exceed the 300-million euro threshold.”
An overview of Group figures
In 2007 HHLA Group significantly boosted revenues and earnings and further improved important financial indicators:
- Growth of 16 percent brought revenues up to 1,180 million euros (previous year: 1,017 million euros).
- Operating earnings (EBIT) once again increased disproportionately, by 32 percent to 288 million euros (previous year: 218 million euros).
- Here HHLA’s listed core business, which is vested in the Port Logistics sub-group, achieved revenues of 1,152 million euros and an EBIT of 277 million euros.
- Earnings before tax (EBT) rose by 38 percent to 257 million euros (previous year: 187 million euros).
- Consolidated profit for the year (earnings after tax), with growth at 30 percent, totalled 152 million euros (previous year: 117 million euros).
- At 111 million euros, an increase of 15 percent, consolidated profit for the year after minority interests for the first time exceeded the 100-million mark (previous year: 97 million euros).
- Earnings before tax, interest, depreciation and amortization (EBITDA) rose by 28 percent to 379 million euros (previous year: 296 million euros). The EBITDA margin improved by three percentage points to 32
percent.
- ROCE, HHLA’s value-oriented controlling yardstick, rose again by three percentage points to 27.4 percent.
- The main contributions to the significant rise in HHLA Group’s equity ratio to 38.4 percent (previous year: 21.6 percent) were from the surplus on the year as well as the accruals to Group equity derived from the proceeds of the stock flotation.
Growth in all segments
- Container Segment. Despite operational limitations caused by the ongoing expansion and modernization programme, HHLA container terminals in the Port of Hamburg and Odessa strongly boosted volumes handled: With 7.2 million standard containers, year-on-year growth of 11.7 percent was achieved. The momentum in volumes combined with a further improvement in the quality of income led to an increase in earnings of over 17 percent to 693 million euros. At 317 million euros (up 30 percent) and 248 million euros (up 34 percent) respectively, EBITDA and EBIT as indicators on earnings surpassed the previous year’s figures. This segment accounts for 59 percent of Group revenues. Intermodal Segment. The HHLA companies running container hinterland
traffic once again profited from the sustained momentum of container throughput and boosted volume transported by 8.3 percent to 1.7 million standard containers, with the POLZUG (Poland, the CIS countries) and
METRANS (Czech Republic, Slovakia, Hungary) rail companies making a special contribution. Bottlenecks in infrastructure and transport operations (among these the strike by German engine drivers at the end
of 2007) ensured difficult conditions here. Nevertheless, thanks to higher utilization of trains and facilities, further improvements in productivity and active pricing policy, volume growth was reflected in a distinct improvement in revenues and earnings. Segment revenues climbed by 18 percent to 332 million euros. EBITDA and EBIT as indicators on earnings advanced disproportionately to 48 million euros (up 32 percent) and 37 million euros (up 35 percent), respectively. The segment accounts for 28 percent of Group revenues.
- Logistics Segment. With earnings growth of 4 percent to 119 million euros and improvements in EBITDA and operating earnings (EBIT) by 10 percent to 17 million euros and 6 percent to 13 million euros, respectively, the segment continued to develop satisfactorily.
Outstanding contributions to this satisfactory trend came from special cargo handling (bulk cargoes, fruit, vehicles) as well as consultancy services. Here again, in the Logistics Segment the financial year was notable for numerous rebuilding and expansion projects with the aim of extending existing capacities to cater for the future. The segment accounts for 10 percent of Group revenues.
- Real Estate Segment. Thanks to new developments at Speicherstadt properties and a distinctly improved letting quotient, on a year-on-year basis revenues were 14 percent higher at 31 million euros. Owing to
special factors (extraordinary income in the previous year, expenses for leased space that cannot be capitalized, EBITDA fell by over one million euros to 14 million euros. Segment EBIT was down by 4 million euros at 10 million euros. Excluding special factors, there was a 10 percent rise in operating result (EBIT). The segment accounts for 2 percent of Group revenues.
Expansion programme systematically continued In 2007 HHLA maintained its growth programme with an investment volume of 195 million euros. At 127 million euros, the largest part of this went to the Container Segment. Investments were focused especially on new container gantry cranes for Hamburg and Odessa, construction of new storage blocks and enlargement and modernization of the vehicle fleet (AGV and straddle carriers), as well as the start of construction of the new on-dock rail container terminal at HHLA Container Terminal Tollerort. In the Intermodal Segment, the bulk of investment was in the rail company METRANS, which primarily invested in new handling equipment at its terminals as well as topping up its own railcar fleet.
Creating jobs, intensifying training In 2007, HHLA’s staff total increased by 350 or 8.3 percent to 4,565.
Since the ongoing expansion programme started in 2004, the Group’s staff total has risen from 3,534 by over 1,000 or nearly 30 percent. HHLA regards securing more knowledge for the logistics chain by training a new generation as one of its core tasks: With eight vocational training professions and four university sandwich courses, the Group offers a wide spectrum of career starts. With 128 trainees and students, in 2007 the number of training places was 14 percent up on the previous year.
1.5 billion euros for further growth
HHLA will be continuing its ambitious growth programme in the coming years. Among other things, the capacity of its container terminals in Hamburg will be increased to around 12 million standard containers (TEU)
by 2012. Around 6.7 million TEU were handled here in 2007. In the period between 2008 and 2012, almost 1.5 billion euros is to be invested in expanding terminal capacities, transport services and logistics activities, as well as real estate.
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.
year: 24.4 percent), return on capital employed (ROCE) reached a new peak. Double-digit growth in revenues is expected once again for fiscal 2008.
“HHLA looks back on an extremely successful financial year 2007. We have maintained our highly successful growth course with strong increases in revenues, result and return,” declared Klaus-Dieter Peters, Chairman of HHLA Executive Board. “The successful stock flotation on 2 November 2007 puts us in a position to implement our ambitious expansion programme swiftly and systematically. This is flanked by a comprehensive investment programme by the City of Hamburg in the expansion and modernization of Port of Hamburg infrastructure.
That will enable HHLA to continue to actively exploit the opportunities arising from the sustained growth momentum of global logistics chains.”
For the shares traded on the stock exchange in the Port Logistics sub-group, accounting for 98 percent of HHLA revenues, for the 2007 financial year HHLA’s Executive Board and Supervisory Board will recommend to the Annual General Meeting a dividend payment of 85 eurocents per entitled share.
Double-digit revenue growth expected for 2008 In a market environment that has remained good until now, the
favourable business trend has persisted in the first few months of 2008. For Northern Europe research institutes forecast an increase in container throughput of around 10 percent for the year 2008 as a whole.
HHLA therefore reckons with a continuation of its profitable growth course during the current expansion programme. “On the basis of the trend so far,” says HHLA Chief Executive Officer Klaus-Dieter Peters, “we expect renewed double-digit growth in revenues for the financial year 2008 and total revenues of around 1.3 billion euros. Operating result (EBIT) at Group level should for the first time exceed the 300-million euro threshold.”
An overview of Group figures
In 2007 HHLA Group significantly boosted revenues and earnings and further improved important financial indicators:
- Growth of 16 percent brought revenues up to 1,180 million euros (previous year: 1,017 million euros).
- Operating earnings (EBIT) once again increased disproportionately, by 32 percent to 288 million euros (previous year: 218 million euros).
- Here HHLA’s listed core business, which is vested in the Port Logistics sub-group, achieved revenues of 1,152 million euros and an EBIT of 277 million euros.
- Earnings before tax (EBT) rose by 38 percent to 257 million euros (previous year: 187 million euros).
- Consolidated profit for the year (earnings after tax), with growth at 30 percent, totalled 152 million euros (previous year: 117 million euros).
- At 111 million euros, an increase of 15 percent, consolidated profit for the year after minority interests for the first time exceeded the 100-million mark (previous year: 97 million euros).
- Earnings before tax, interest, depreciation and amortization (EBITDA) rose by 28 percent to 379 million euros (previous year: 296 million euros). The EBITDA margin improved by three percentage points to 32
percent.
- ROCE, HHLA’s value-oriented controlling yardstick, rose again by three percentage points to 27.4 percent.
- The main contributions to the significant rise in HHLA Group’s equity ratio to 38.4 percent (previous year: 21.6 percent) were from the surplus on the year as well as the accruals to Group equity derived from the proceeds of the stock flotation.
Growth in all segments
- Container Segment. Despite operational limitations caused by the ongoing expansion and modernization programme, HHLA container terminals in the Port of Hamburg and Odessa strongly boosted volumes handled: With 7.2 million standard containers, year-on-year growth of 11.7 percent was achieved. The momentum in volumes combined with a further improvement in the quality of income led to an increase in earnings of over 17 percent to 693 million euros. At 317 million euros (up 30 percent) and 248 million euros (up 34 percent) respectively, EBITDA and EBIT as indicators on earnings surpassed the previous year’s figures. This segment accounts for 59 percent of Group revenues. Intermodal Segment. The HHLA companies running container hinterland
traffic once again profited from the sustained momentum of container throughput and boosted volume transported by 8.3 percent to 1.7 million standard containers, with the POLZUG (Poland, the CIS countries) and
METRANS (Czech Republic, Slovakia, Hungary) rail companies making a special contribution. Bottlenecks in infrastructure and transport operations (among these the strike by German engine drivers at the end
of 2007) ensured difficult conditions here. Nevertheless, thanks to higher utilization of trains and facilities, further improvements in productivity and active pricing policy, volume growth was reflected in a distinct improvement in revenues and earnings. Segment revenues climbed by 18 percent to 332 million euros. EBITDA and EBIT as indicators on earnings advanced disproportionately to 48 million euros (up 32 percent) and 37 million euros (up 35 percent), respectively. The segment accounts for 28 percent of Group revenues.
- Logistics Segment. With earnings growth of 4 percent to 119 million euros and improvements in EBITDA and operating earnings (EBIT) by 10 percent to 17 million euros and 6 percent to 13 million euros, respectively, the segment continued to develop satisfactorily.
Outstanding contributions to this satisfactory trend came from special cargo handling (bulk cargoes, fruit, vehicles) as well as consultancy services. Here again, in the Logistics Segment the financial year was notable for numerous rebuilding and expansion projects with the aim of extending existing capacities to cater for the future. The segment accounts for 10 percent of Group revenues.
- Real Estate Segment. Thanks to new developments at Speicherstadt properties and a distinctly improved letting quotient, on a year-on-year basis revenues were 14 percent higher at 31 million euros. Owing to
special factors (extraordinary income in the previous year, expenses for leased space that cannot be capitalized, EBITDA fell by over one million euros to 14 million euros. Segment EBIT was down by 4 million euros at 10 million euros. Excluding special factors, there was a 10 percent rise in operating result (EBIT). The segment accounts for 2 percent of Group revenues.
Expansion programme systematically continued In 2007 HHLA maintained its growth programme with an investment volume of 195 million euros. At 127 million euros, the largest part of this went to the Container Segment. Investments were focused especially on new container gantry cranes for Hamburg and Odessa, construction of new storage blocks and enlargement and modernization of the vehicle fleet (AGV and straddle carriers), as well as the start of construction of the new on-dock rail container terminal at HHLA Container Terminal Tollerort. In the Intermodal Segment, the bulk of investment was in the rail company METRANS, which primarily invested in new handling equipment at its terminals as well as topping up its own railcar fleet.
Creating jobs, intensifying training In 2007, HHLA’s staff total increased by 350 or 8.3 percent to 4,565.
Since the ongoing expansion programme started in 2004, the Group’s staff total has risen from 3,534 by over 1,000 or nearly 30 percent. HHLA regards securing more knowledge for the logistics chain by training a new generation as one of its core tasks: With eight vocational training professions and four university sandwich courses, the Group offers a wide spectrum of career starts. With 128 trainees and students, in 2007 the number of training places was 14 percent up on the previous year.
1.5 billion euros for further growth
HHLA will be continuing its ambitious growth programme in the coming years. Among other things, the capacity of its container terminals in Hamburg will be increased to around 12 million standard containers (TEU)
by 2012. Around 6.7 million TEU were handled here in 2007. In the period between 2008 and 2012, almost 1.5 billion euros is to be invested in expanding terminal capacities, transport services and logistics activities, as well as real estate.
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.