Damco's Q1 profit remains flat, although net revenue is up 8pc
2012 05 29
- Details
DAMCO, the global logistics business unit of the A.P. Moller-Maersk Group, has announced that first quarter 2012 profit was US$7 million, the same amount recorded in the corresponding prior year period.
EBIT fell by 19 per cent year on year to US$13 million. The EBIT margin decreased to 1.8 per cent, down from 2.3 per cent in 2011.
The company said in a statement that trading was in line with last year, but results were negatively affected by the costs associated with the recent restructuring of Damco's European activities into mature and developing markets.
"We will absorb additional cost in the first two quarters because of the restructuring of our European region into East and West. This is the right thing to do to position us for the years to come. When the changes are all implemented at the end of Q2, Damco will be in a stronger position to address the very different needs of these diverse markets," said Damco CEO, Rolf Habben-Jansen.
First quarter gross profit rose by 8 per cent to US$190 million compared to the same period a year earlier, on a net revenue increase of 8 per cent to US$738 million.
The company said the results show its commercial strategy of increased focus on large and medium sized customers in selected industry verticals and enhanced local field sales is delivering the performance expected.
In the first three months of the year, total ocean freight volumes increased by 6 per cent to 187,000 TEU slightly ahead of the market, while air freight tonnage grew by 135 per cent to 40,000 tonnes. This reflects the acquisition of Chinese air freight forwarder NTS in August 2011, as well as a number of large customer wins. Excluding NTS, the company registered a volume growth of 37 per cent, in spite of an overall declining airfreight market.
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