HAPAG-LLOYD BUCKS MARKET TREND WITH HIGHER SHIPPING PROFITS

HAPAG-LLOYD BUCKS MARKET TREND WITH HIGHER SHIPPING PROFITS    Hapag-Lloyd, the German shipping, logistics and construction units group, has posted an 18-percent higher operating profit from container shipping for the first nine months of 2001 despite the severe downturn in the market.
   Operating profit after depreciation and interest at Hapag-Lloyd Container Line reached 159 million euro ($142 million) in the nine months to Sept. 30, 2001, as compared to 135 million euro in January-September 2000.
   During the same period, operating profit at Algeco, Hapag-Lloyd’s mobile construction unit provider, soared by 21 percent, to 47 million euro ($42 million). Operating profit from the chemical logistics arm VTG-Lehnkering was 22 million euro ($20 million), up from 21 million euro. Cruises made an unchanged operating profit of 4 million euro (about $4 million). Hapag-Lloyd’s forwarding subsidiary Pracht saw its operating profit fall to 2 million euro (about $2 million) from 3 million euro in January-September 2000.
   Total group operating profit after depreciation and interest for Hapag-Lloyd increased by 18 percent, to 250 million euro ($223 million) in the latest nine-month period, from 211 million euro, while group revenue rose by 6 percent, to 3 billion euro ($2.7 billion).
   For the whole year, Hapag-Lloyd expects to increase group profits by 10 percent. It said that this will be the best profits in its history.
   Hapag-Lloyd attributed the higher profits from container shipping to increased volumes, productivity and a favorable euro/U.S. dollar exchange rate. The carrier moved 1.2 million TEUs in January-September 2001, an increase of 8 percent, whereas global market growth during the period has been only 1 or 2 percent.
   Hapag-Lloyd also suffered decreases in freight rates.
   “Against the background of increasing weakness in demand and the addition into the market of deployed vessel capacity, serious decreases in rates had to be managed from the middle of the year,” Hapag-Lloyd said.