Hapag-Lloyd’s shipping business first-half earnings up 63%

Hapag-Lloyd’s shipping business first-half earnings up 63%    The shipping business of Hapag-Lloyd, which comprises Hapag-Lloyd Container Line and Hapag-Lloyd Cruises, raised its earnings 63 percent to 104 million euros ($127 million) in the first half of the year from 64 million euro a year earlier.
   Revenue from shipping increased 13 percent to 1.25 billion euros ($1.5 billion) from 1.11 billion euros.
   Hapag-Lloyd, whose activities also include specialized logistics services, was the only arm of the German conglomerate TUI to post profits for the first half of the year, as the tourism-to-shipping group reported a net deficit of 36 million euros ($44 million) for the latest six-month period, as compared to a net profit of 410 million euros a year earlier.
   Hapag-Lloyd's shipping and logistics activities raised their overall earnings before tax 3 percent in the first half to 106 million euros ($129 million). While Hapag-Lloyd's shipping activities achieved a large rise in profits, the special logistics activities of the company lowered their profit following the sale of two logistics businesses.
   Hapag-Lloyd Container Line increased its volume 19 percent in the first half to 1.17 million TEUs. The carrier also reported higher dollar-denominated freight rates. Freight rates continued to develop favorably in the second quarter, exceeding the previous quarter’s levels and also increasing year-on-year, helping to boost profits. Yet, TUI noted the increases in Hapag-Lloyd Container Line’s revenue and earnings were “curbed by the persistently weak U.S. dollar exchange rate.”
   The “special logistics” activities of Hapag-Lloyd experienced a 95-percent drop in earnings to 2 million euros (about $2 million) in the first half, from 39 million euros a year ago, and a 31-percent decline in revenue to 519 million ($633 million). These decreases were mainly due to the sale of Pracht Spedition + Logistik Jan 1, and the disposal of most of the special logistics operations of VTG-Lehnkering April 1.
   TUI plans to list Hapag-Lloyd on the stock market by the end of the year as a company focused on shipping.
   The German group also reported that Hapag-Lloyd Container Line boosted its second quarter traffic volume 21 percent to 625,000 TEUs, from 518,000 TEUs in the same quarter of 2003. “A substantial year-on-year increase in transport volumes was recorded in particular on the trade lanes from Asia to North America,” the group said. Transpacific volume rose 22 percent in the second quarter to 159,000 TEUs.
   Asian volumes other than transpacific cargoes rose 27 percent to 261,000 TEUs. TUI said the volume rise was due to “a considerable increase” on the routes between Europe and Asia and in intra-Asia.
   TUI said Hapag-Lloyd Cruises, its small cruise-shipping arm, recorded “an improvement in business” in the second quarter, but it provided no detailed figures on its results.