HAPAG-LLOYD PREDICTS RISE IN PROFITS
Hapag-Lloyd, the German transport and logistics group, said that it
expects to report increased profits from its liner shipping business this year and next
In the current 1998/1999 financial year, due to end on Sept. 30, liner
shipping at Hapag-Lloyd will return an operating profit of about DM100 million ($53
million), up by a third on a comparable basis.
Last year, Hapag-LLoyd formally reported a DM50 million operating profit from
liner shipping, but it covered a transitional of only 9 months, between Jan. 1 and Sept.
Bernd Wrede, chairman of Hapag-Lloyd, said that the carrier has increased
carryings by over 15 percent this year, to about 1.5 million TEUs, without increasing its
Membership of the Grand Alliance has saved Hapag-Lloyd over $10 million a
year, said Gunther Casjens, chief executive officer of Hapag-Lloyd Container Line.
The Hapag-Lloyd group, which will now include liner shipping, chemicals
logistics, leasing of "modules" and cruises, expects to return a pre-tax group
profit of over DM200 million ($105 million) in the 1999/2000 financial year, due to end on
Sept. 30, 2000.
On Oct. 1, Hapag-Lloyd is to complete the transfer to its parent company, the
Preussag group, of all its tourism activities, with the exception of cruise shipping.