Hapag bucks trend, makes money in 3Q

   The liner carrier Hapag-Lloyd said it made $46 million in operating profits in the third quarter, an 87 percent decline from the same period in 2010.
   For the year, the Hamburg-based container line has made $84.9 million, an 87.6 percent drop from the first nine months of 2010.
   Hapag-Lloyd’s third quarter revenue was $1.5 billion, a 13.7 percent decline from the third quarter last year, while revenue for the year was $6.1 billion, down 3.6 percent.
   Container volume in the third quarter rose 5 percent, to 1.3 million TEUs. For the year, volume is up 3.9 percent, to 3.8 million TEUs.
   “We performed very well in a demanding market environment. Hapag-Lloyd’s operating result is well above the industry average,” said Michael Behrendt, chairman of the executive board of Hapag-Lloyd AG. “Given the challenging conditions that all liner shipping companies are still facing, our operating result is satisfactory and a clear sign of our strength.”
   Hapag-Lloyd said its positive result, which has severely bucked the industry trend in the third quarter, was due largely to its cost savings program initiated in 2009. The line said, however, that steep bunker price increases were driving up vessel operating costs.
   “The Hapag-Lloyd Group’s prime objective is long-term profitable growth,” the line said in its financial report. “Increasing global demand for container transport forms the basis for this planned organic growth. According to current forecasts, the volume of global container transport should again grow somewhat faster than world trade in 2012. Hapag-Lloyd believes that selling transport services at viable prices is more important than expanding volume at any cost. Sustainable operating cash flows and a solid financing structure along with sound liquidity and equity are also of considerable importance in conducting business successfully.”
   As of Sept. 30, the Albert Ballin consortium, the majority owner of Hapag-Lloyd, controlled 61.6 percent of the line, while former majority owner TUI controlled the other 38.4 percent.