Hapag-Lloyd sees 67% rise in 2nd-quarter shipping profits

Hapag-Lloyd sees 67% rise in 2nd-quarter shipping profits    The liner shipping and cruise shipping activities of Hapag-Lloyd saw a rebound in operating profit in the second quarter, with profits rising to 47 million euros ($52 million) in the latest quarter, from 17 million euros in the second quarter of 2002.
   Shipping revenue increased slightly in local currency over the same period, to 577 million euros ($634 million) in the second quarter, from 568 million euros in the corresponding quarter of 2002.
   For the first six months of the year, Hapag-Lloyd’s shipping business, which includes Hapag-Lloyd Container Line, increased its operating income to 67 million euros ($74 million), about five times its profit of 12 million euros reported for the first half of 2002.
   “The improvement was primarily due to the year-on-year increase in the transport volume of roughly 11 percent and the increase in freight rates on almost all routes,” said TUI, the German conglomerate that owns Hapag-Lloyd.
   However, TUI said that Hapag-Lloyd was adversely affected by the weak U.S. dollar exchange rate against the euro and by the increase in fuel prices.
   For the first half of the year, revenue from shipping at Hapag-Lloyd rose by 1 percent in local currency, to 1.1 billion euros ($1.2 billion).
   The non-shipping logistics activities of Hapag-Lloyd — comprising mainly VTG-Lehnkering and Algeco — earned an operating income of 24 million euros ($26 million) in the second quarter, 8 percent down on the 26 million result in the same quarter of 2002. Revenue from these activities dropped by 3 percent over the same period, to 376 million euros ($413 million), from 387 million euros.