Discontinued Operation
| Service |
Other Topics
Discontinued operation
as PDF file
more...
Following the decision to separate container shipping from the Group, announced on 17 March 2008, this sector has been carried as a discontinued operation in accordance with IFRS 5. Apart from container shipping operations, it comprises the strategic interests in the container terminals in Hamburg (Container Terminal Altenwerder) and Montreal, Canada (Montreal Gateway Terminals).
Discontinued operation – Key figures
| € million | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| Turnover | 1,510.1 | 1,472.5 | + 2.6 | 2,961.3 | 2,896.2 | + 2.2 |
| Result from discontinued operation | 152 | - 4 | n/a | 140 | 98 | + 42.9 |
| Adjustment according to IFRS 5* | - 59 | – | – | - 59 | – | – |
| EAT | 93 | - 4 | n/a | 81 | 98 | - 17.3 |
| Net interest result/taxes | - 4 | 17 | n/a | 9 | 52 | - 82.7 |
| EBITA by division | 89 | 13 | + 584.6 | 90 | 150 | - 40.0 |
| Gains on disposals | – | + 3 | – | - 193 | ||
| Restructuring | + 7 | – | + 7 | – | ||
| Purchase price allocation | + 19 | + 20 | + 38 | + 41 | ||
| Other one-off items | – | - 31 | - 2 | - 29 | ||
| Underlying EBITA by division | 115 | 5 | n/a | 133 | - 31 | n/a |
| Investments | 93.8 | 180.5 | - 48.0 | 222.4 | 285.7 | - 22.2 |
| Headcount (30 June) | – | – | – | 7,723 | 8,256 | - 6.5 |
*) Suspension of depreciation (€ 66 million) and equity measurement of participations of container shipping (€ 7 million) since 31 March 2008.
Turnover and earnings
Turnover by the reclassified container shipping operations rose by 2.6% to around € 1.5 billion in the second quarter of 2008. It also grew by 2.2% to € 3.0 billion for the first half of the year. This performance resulted from a significant increase in freight rate levels and slight volume growth. On the other hand, it was impacted by the substantial weakening of the US dollar against the euro.
Earnings in the second quarter of 2008 grew substantially by € 76 million to € 89 million. In the second quarter of 2008, restructuring expenses of € 7 million incurred in connection with the restructuring of the American Hapag-Lloyd organisation, and additional expenses of € 19 million incurred for the purchase price allocation had to be adjusted for. On balance, the second quarter of 2007 included an one-off income of € 8 million which had to be adjusted for. After adjustment of one-off effects, earnings totalled € 115 million in the second quarter of 2008, an increase of € 110 million year-on-year. Accumulated earnings for the first half of the year declined by 40.0% to € 90 million, since the performance in the first half of 2007 was characterised in particular by gains on disposal from the divestment of the Montreal Gateway Terminals and the divestment of the minority interest in Germanischer Lloyd AG totalling € 193 million. Adjusted for the one-off effects underlying earnings for the first half of 2008 totalled € 133 million, up € 164 million year-on-year.
Transport volumes Hapag-Lloyd
| ‘000 TEU | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| Far East | 346 | 352 | - 1.9 | 675 | 687 | - 1.7 |
| Trans-Pacific | 280 | 262 | + 7.0 | 545 | 505 | + 7.9 |
| Atlantic | 366 | 381 | - 3.9 | 705 | 751 | - 6.0 |
| Latin America | 248 | 227 | + 8.9 | 454 | 442 | + 2.8 |
| Australasia | 194 | 160 | + 21.3 | 372 | 312 | + 19.0 |
| Total | 1,434 | 1,382 | + 3.7 | 2,752 | 2,697 | + 2.0 |
Freight rates Hapag-Lloyd
| US-$/TEU | Q2 2008 | Q2 2007 | Var. % | H1 2008 | H1 2007 | Var. % |
|---|---|---|---|---|---|---|
| Far East | 1,622 | 1,266 | + 28.0 | 1,633 | 1,251 | + 30.6 |
| Trans-Pacific | 1,666 | 1,422 | + 17.2 | 1,591 | 1,402 | + 13.4 |
| Atlantic | 1,700 | 1,451 | + 17.1 | 1,677 | 1,459 | + 15.0 |
| Latin America | 1,501 | 1,345 | + 11.5 | 1,503 | 1,368 | + 9.9 |
| Australasia | 1,172 | 1,179 | - 0.6 | 1,187 | 1,179 | + 0.6 |
| Ø for all trade lanes | 1,568 | 1,350 | + 16.2 | 1,554 | 1,348 | + 15.3 |
Development of the trade lanes
In the second quarter of 2008, Hapag-Lloyd generated volume growth of 3.7% year-on-year. Accumulated growth in transport volumes for the first half of the year totalled 2.0% year-on-year. The increase in transport volumes was driven by the Latin America, Trans-Pacific and Australasia trade lanes, while volumes in the Far East and Atlantic trade lanes fell short of 2007 levels. Average freight rates rose, growing significantly by 16.2% year-on-year in the second quarter and 15.3% for the first half of the year. All trade lanes with the exception of Australasia achieved increases in freight rates in the second quarter.
Far East
In the Far East trade lane, transport volumes declined by 1.9% year-on-year. The slowdown in economic growth in China and the contraction of demand for consumer goods in Europe caused a decline in transport volumes both on the routes from Asia to Europe and in the opposite direction. This trade lane achieved the strongest year-on-year growth in freight rates at 28.0%. Higher freight rates were achieved both on the routes from Asia to Europe and in the opposite direction. The freight rate growth was primarily driven by the increasing implementation of freight rate surcharges to account for rises in bunker costs.
Trans-Pacific
Transport volumes rose by 7.0% year-on-year in the Trans-Pacific trade lane in the second quarter. This growth was attributable to the rise in transport volumes on the routes from Asia to North America and in the opposite direction. The routes from North America to Asia benefited above all from the weakening of the US dollar, causing a pickup in demand for American products in the Asian region. Freight rate levels also grew strongly, rising by 17.2% year-on-year in the second quarter. The strongest freight rate increases were achieved on the routes from North America to Asia.
Atlantic
Transport volumes in the Atlantic trade lane were 3.9% down year-on-year in the second quarter. The development of volumes was affected in particular by the persistent weakness of the US dollar exchange rate. Due to the resulting drop in demand for European products, transport volumes from Europe to North America fell below 2007 levels. Transport volumes on routes in the opposite direction also fell short of 2007 levels due to a weakening in demand for consumer goods in Europe. In contrast, freight rate levels, rose significantly in the second quarter of 2008, growing by 17.1% year-on-year. An increase in freight rates was achieved in particular on the routes from North America to Europe.
Latin America
In the Latin America trade lane, transport volumes in the second quarter climbed 8.9% year-on-year. This was due, among others, to an increase in exports to Europe and Asia. Freight rate levels also rose year-on-year in the second quarter, growing by 11.5%. This development primarily affected the routes from Latin America to Europe and North America.
Australasia
At 21.3%, the Australasia trade lane recorded the strongest volume growth of all trade lanes in the second quarter. This performance was driven substantially by the volume growth on inner-Asian routes. Since inner-Asian transport, featuring relatively low freight rates due to shorter shipping distances, accounted for a higher proportion of volumes, average freight rates declined slightly by 0.6% year-on-year.