MADISON, New Jersey, August 22, 2011 - Damco - one of the world’s leading providers of freight forwarding and supply chain management solutions – continues to improve its financial performance. The global logistics company, which has reported improved operations and year-on-year results in both 2009 and 2010, today announced continued good progress moving into the second half of 2011 despite increasingly challenging conditions in the global freight markets.
In the first half of 2011, Damco’s ocean freight volumes increased 11% compared with the same period in 2010 - well above the 6-8% market average. Supply chain management volumes were 2% lower than in the same period in 2010 due to the absence of last year’s restocking and weakening consumer demand in North America and Europe. In the air freight segment volumes also grew 11%, substantially ahead of the 2-4% market average.
Compared to the same period last year gross profit is up 9% to USD 361 million. Damco EBIT before restructuring costs for 1H 2011 grew 14% to USD 37 million, backed by increased volumes and improved unit margins.
“Our results are encouraging, especially considering the ongoing slowdown of global freight markets. Our bottom-line remains solid and year-on-year we have improved our sales of new business in the first half of 2011 by 37%. We are winning more and more large customers and securing strategically important wins within our key target industry verticals. We expect a continued challenging market for the rest of 2011, but our mind is still set on growth. What is also important is that these results have been achieved whilst at the same time we also invest in resources to service and develop our customers and in IT solutions and developing new and enhanced service offerings” says Rolf Habben-Jansen, Chief Executive Officer, Damco.
Finally, in August Damco acquired a majority stake in New Times Transportation in China – which will significantly further strengthen its Global Airfreight Product and make Damco a substantial player in that segment from all main origins in Asia.
2011 first half year key financial figures and volume
|Net Revenue||2010||H1 2010||H1 2011||Change %|
|Total (million USD)||2,700||1,414||1,372||-3%*|
|Gross profit||2010||H1 2010||H1 2011||Change %|
|Total (million USD)||707||332||361||9%|
|EBIT (before restructuring costs)||2010||H1 2010||H1 2011||Change %|
|Total (million USD)||85||33||37||14%|
|Volume||2010||H1 2010 vs. H1 2011 %|
|Ocean (controlled TEU)||610,000||11%|
|SCM (‘000 CBM)||48,000||-2%|
* The drop in revenue is due to a change in accounting policy with respect to pass-through revenue. On a like for like basis Net Revenue grew 3%.
Damco is one of the world’s leading third party logistics providers specializing in customized freight forwarding and supply chain solutions, offering a broad range of services to customers all over the world. The company has 10,500 employees in over 280 offices across 90 countries and representation in 120 countries in Africa, Asia, Australia, Europe, North America, Middle East, and Latin America. In 2010, the company had a net turnover of over USD 2.7 billion, managed more than 2.4 million TEU of ocean freight and supply chain management volumes and air freighted more than 75,000 tons. Damco is an independent business unit within the A.P. Moller - Maersk Group.