Damco Reports Positive 2011 Half Year Result

  • Posted on 29 August 2011

Damco 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, 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 percent compared with the same period in 2010, well above the six to eight percent market average. Supply chain management volumes were two percent 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 percent, substantially ahead of the two to four percent market average.

Compared to the same period last year gross profit is up nine percent to US$361 million. Damco EBIT before restructuring costs for 1H 2011 grew 14 percent to US$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 percent. 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.