HHLA sees revenues, EBIT drop in 2015

The logistics provider and container terminal operator primarily attributed the declines in revenues and EBIT to the economic crisis in Russia and the Ukraine, the slowdown in economic growth in China and ongoing restrictions in the area of infrastructure.    Logistics provider and container terminal operator Hamburger Hafen und Logistik AG (HHLA) had revenues of 1.14 billion euros (U.S. $1.28 billion) for 2015, a 5 percent decline from 2014, according to HHLA’s preliminary unaudited figures. 
   Earnings before interests and taxes (EBIT) for 2015 totaled approximately 157 million euros, about a 7 percent drop year-over-year.
   HHLA primarily attributed the declines in EBIT and revenues to the economic crisis in Russia and the Ukraine; the slowdown in economic growth in China; and ongoing restrictions in the area of infrastructure.
   Overall, HHLA is divided into two subgroups: the port logistics subgroup, which is its listed core business; and the real estate subgroup, which includes HHLA’s properties that are not specific to port handling.
   The port logistics subgroup is comprised of the container, intermodal and logistics segments. HHLA’s holding company/other division also falls under the port logistics subgroup, however it does not constitute an independent segment under International Reporting Standards.
   The port logistics subgroup’s revenues totaled around 1.11 billion euros in 2015, while its EBIT reached about 141 million euros, a year-over-year drop of approximately 0.9 percent and 9.6 percent, respectively.
   HHLA’s terminals in Hamburg had a throughput of 6.3 million TEUs in 2015, a 12.6 percent decline from the prior year. HHLA’s container terminal in Odessa handled 0.3 million TEUs, only slightly lower than in 2014.
   On a bright note, container transport by the HHLA intermodal companies in 2015 rose 2.7 percent year-over-year to 1.3 million TEUs. HHLA’s rail companies experienced a rise in transport volumes in European seaport-hinterland traffic by over 5 percent from 2014. However, challenging traffic conditions in the greater Hamburg area lead road transport volumes to slump just under 5 percent from 2014.
   Looking ahead to 2016, Danish ocean carrier Maersk Line’s new Colombia Express loop, which was specifically designed for refrigerated cargo, made its first call to HHLA’s Frucht- und Kühl-Zentrum (fruit and refrigeration center) in Hamburg last week. “With the new service, the HHLA fruit and refrigeration center is further expanding its position as the most important German handling location for bananas,” HHLA said.