Hapag-Lloyd bridges to the future
EUR 603.7 million loss in 2014: Extensive measures under way to improve the international competitiveness of Hapag-Lloyd
“In terms of results, 2014 was undoubtedly an extremely disappointing year. The group net result of EUR -603.7 million (previous year: -97.4 million) was heavily influenced by one-off effects. At the same time, however, the successful merger with CSAV also made it a highly significant, ground-breaking year for Hapag-Lloyd. We are now much more competitive and fit for the future, to which we are looking with optimism,” Rolf Habben Jansen, Hapag-Lloyd CEO said at the presentation of the 2014 annual report in Hamburg.
The manager is confident regarding Hapag-Lloyd’s merger with the container business of the Chelonian shipping company CSAV, expectedly saving at least USD 300 million per year.
They have already been able to exploit the first synergies, with many joint projects currently under way. CSAV’s services are being incorporated into Hapag-Lloyd’s global network. The integration is set to be complete by June.
“Apart from the integration, we have launched a wide range of other measures from which we expect a substantial improvement in earnings of at least USD 100 million in 2015,” Habben Jansen continued. These include optimising sales processes and costs as well as modernising the fleet. Hapag-Lloyd is currently in negotiations with several shipyards in this regard and will be ordering new ships over the coming weeks.
Hapag-Lloyd’s transport volume grew by 7.5 per cent to 5.9 million TEU in the past financial year. The average freight rate was down 3.2 per cent year-on-year at USD 1,434/TEU, while revenue rose by 3.7 per cent to EUR 6.8 billion. EBITDA came to EUR 98.9 million (previous year: EUR 389.1 million) and the operating result to EUR -112.1 million (previous year: EUR 67.2 million).