7:00 | 06.08.2008
DGAP-News: Logwin AG: Logwin AG with positive first half year 2008 despite pressures – Successful launch of the Logwin brand
Logwin AG / Half Year Results
06.08.2008
Release of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
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Logwin AG with positive first half year 2008 despite pressures – Successful
launch of the Logwin brand
- Sales: 1,039.7 million euros; net result: 3.9 million euros
- Pleasing developments at Air + Ocean and Road + Rail
Grevenmacher (Luxembourg) – Logwin AG achieved sales of 1,039.7 million
euros in the first half of 2008. This represents an increase of 3.9 % over
the previous year’s figure of 1,000.9 million euros. Organic growth reached
5.7 %.
Against the backdrop of the generally adverse economic developments and
after taking one-off expenses into consideration, earnings before interest
and taxes (EBIT) amounted to 15.4 million euros, compared to 16.4 million
euros in 2007, and were at the same level as last year. The EBIT margin was
1.5 % (2007: 1.6 %). The net result for the first half amounted to 3.9
million euros compared with the previous year’s value of 4.7 million euros.
Overall, the Logwin Group presented a differentiated picture in the first
half of 2008. The pleasing developments in sales and earnings in the
business segments Air + Ocean and Road + Rail confirmed the new management
structure of the Logwin Group implemented in 2007. In contrast, the
developments in the first half of 2008 in the business segment Solutions
were not satisfactory and earnings lagged clearly behind expectations.
Besides various one-off expenditures, results were impacted mainly by the
increased cost pressures in the reporting period due to rising diesel
prices and the effects of the economic slowdown. Sales measures taken in
the business segment Solutions have not yet started to have their
anticipated effect.
‘The first year with the new group structure confirms the course we have
taken. The business segments Air + Ocean and Road + Rail are developing
positively even in the current economic environment’, states Berndt-Michael
Winter, Chairman of the Executive Committee (CEO) of Logwin AG. ‘We will
also increase sales and profitability at Solutions by intensifying sales
activities. With Logwin we have created a brand that convinces our
customers and furthers our business activities over the long term.’
Solutions
In the first half year of 2008 the business segment Solutions achieved
sales of 366.4 million euros and was at the same level as last year (2007:
367.9 million euros). The business unit Industrial Goods registered strong
sales growth which was mainly due to volume increases with existing
customers, but also to additional business activities for customers,
especially in the automotive field. In contrast, there was a stable or
slightly decreasing sales development in the other three business units.
The result in the reporting period amounted to 7.0 million euros, following
14.3 million euros in the same period last year. The operating margin was
1.9 % (2007: 3.9 %). This development can be attributed to the high cost of
fuel, miscellaneous one-off expenses such as increased bad debt losses as
well as to lost earnings from discontinued customer projects.
Air + Ocean
In the first half of 2008 the business segment Air + Ocean increased sales
by 12.6 % from 238.8 million euros to 269.0 million euros. Both the strong
growth in imports from Asia to Europe in the business unit Europe Middle
East as well as the continued increasing volumes in the business unit Far
East contributed to this rise. The result climbed by 23.5 % to 10.3 million
euros. (2007: 8.3 million euros). On the back of the very pleasing sales
growth, the operating margin improved to 3.8 % (2007: 3.5 %). The
deliberate expansion of the air and ocean freight business thus continues
to be a mainstay for increasing profitability in the Logwin Group.
Road + Rail
Sales in the business segment Road + Rail in the first half year rose to
432.3 million euros and were 3.3 % above the previous year’s figure of
418.5 million euros. Costs were reduced at Road + Rail locations with
insufficient profitability. Significant progress was also made in the
profitability of individual customer projects and in capacity utilisation.
After a loss last year in the amount of -0.6 million euros, the business
segment Road + Rail turned in a pleasing result of 1.1 million euros for
the first six months. The positive earnings development was achieved amid a
continuing tough cost situation in the European land transportation market.
The measures introduced to pass on cost increases systematically will be
further pursued and implemented.
Rebranding and realignment of market image: Logwin. Your Logistics.
Since July 1, a total of 75 companies in 25 countries have been operating
under the new Logwin brand. Following extensive preparations, the market
presence of the Logwin Group has been quickly and successfully transformed.
At the same time the company has put itself in the limelight with its ‘Just
ask Logwin!’ image campaign.
Outlook
Against the background of the current macroeconomic slowdown, the Logwin
Group expects a slightly dampened sales growth, and a slightly increased
EBIT and net earnings over the previous year.
About Logwin AG
As an external partner, Logwin AG, Grevenmacher (Luxembourg), develops a
comprehensive range of logistics and service solutions for trade and
industry. In 2007, the group generated sales of 2.0 billion euros and
currently employs approximately 8,600 staff in 44 countries. Logwin
operates in main markets worldwide and has over 400 locations across all
continents. With its three business segments Solutions (customer-orientated
contract logistics solutions), Air + Ocean (global air and ocean freight
forwarding activities) and Road + Rail (land and special transportation
activities in Central, Western and Eastern Europe), Logwin AG is one of the
market leaders.
Logwin AG is listed on the Prime Standard of Deutsche Boerse. The majority
shareholder is DELTON AG, Bad Homburg.
Contact:
Mara Hancker, Head of Public Relations
P: 00352/719690-1353, F: 00352/719690-1359
pr-info@logwin-logistics.com
Sebastian Esser, Head of Investor Relations
P: 00352/719690-1112, F: 00352/719690-1359
ir-info@logwin-logistics.com
06.08.2008 Financial News transmitted by DGAP
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Language: English
Issuer: Logwin AG
an de Längten 5
L-6776 Grevenmacher
Luxemburg
Phone: +352 719 690 0
Fax: +352 719 690 1359
E-mail: info@logwin-logistics.com
Internet: www.logwin-logistics.com
ISIN: LU0106198319
WKN: 931705
Indices: Prime All Share (PXAP), Classic All Share (CLXP), DAXsector
All Transportation & Logistics (4N87), DAXsector
Transportation & Logistics (CXPL), DAXsubsector All Logistics
(4N99), DAXsubsector Logistics (I1LB)
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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