Hapag-Lloyd books $23 million Q1 profit
German container line Hapag-Lloyd said Thursday it made $22.9 million (16.1 million euros) in the first quarter, a 140.3 percent increase on the same period in 2010.
Revenue for the line increased 16.5 percent to $2.1 billion (1.5 billion euros) as the average freight rate climbed 10 percent to $1,563 per TEU. Hapag-Lloyd's container volume rose 2 percent to 1.2 million TEUs.
'Given the prevailing conditions, we achieved a good result in the first quarter,' said Michael Behrendt, chairman of the executive board of Hapag-Lloyd Holding AG. 'Nevertheless, the rise in the oil price, the weak U.S. dollar and growing competition are making business more difficult. Our aim must be to see that the additional external challenges are covered by appropriate rate increases.'
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The line said its volume grew 6.5 percent in trades to and from Latin America, while Asia/Europe volumes fell 8.5 percent as the line 'rejected transport contracts with lower price quality.' Transpacific volume, however, increased 11.8 percent.
The line also confirmed that from May 31, the 'Albert Ballin' consortium will increase its stake in Hapag-Lloyd by 11.3 percent to 61.6 percent, with TUI AG's stake being correspondingly reduced to 38.4 percent.
