Logwin in 2012: Result impacted by impairments at Solutions

Logwin group is planning moderate growth in business volumes and consequently in sales for the 2013 financial year
 
Strategic experts of the Logwin group are assuming a slight improvement in overall economic conditions for the 2013 financial year. Based on this assumption the management of the provider of full range logistics and service solutions for trade and industry targets moderate growth in business volumes and consequently in sales. The group is aiming for an increase in consolidated operating result and in profitability. It is intended to achieve this in particular by improving the earnings situation of the business segment Solutions, states the enterprise with current staff of more than 5.000 at more than 250 locations on six continents.
 
Logwin generated total sales of EUR 1,325 million in the 2012 financial year, which was thus slightly below the figure for the previous year (2011: EUR 1,335 million). At EUR 16.2 million, operating income (EBITA) before valuation effects in the reporting period was EUR 5.4 million below the figure for last year (2011: EUR 21.6 million). The annual result for the reporting period of EUR -68.6 million was impacted by impairments of goodwill at the business segment Solutions amounting to EUR 71.5 million. At EUR 7.1 million, the net result for the reporting period adjusted for the impairment of goodwill was at the same level as last year.
 
Berndt-Michael Winter, Chairman of the Executive Committee (CEO) of Logwin AG comments, "Despite the necessary impairments we still have our sights firmly set on a realistic, customary level of profitability for Solutions. In 2013 we will continue to pursue the measures aimed at achieving profitability for the segment. Air + Ocean also operates in a challenging environment but is able to hold its ground successfully thanks to its excellent quality."
 
The business segment Solutions generated sales of EUR 692 million in 2012 (2011: EUR 717 million). In addition to the disposal of individual locations, the decline in sales was caused by lower volumes in the areas of Media and Retail Logistics of the functional unit Transport and Retail Networks. The regions Central and Eastern Europe in the functional unit Logistics and Warehousing showed positive developments in terms of volumes. The operating result (EBITA) of the business segment Solutions before valuation effects, at EUR -2.2 million, was significantly below the value for the previous year (2011: EUR 3.5 million) and was substantially impacted by strong competitive and price pressures, high fuel and transportation costs as well as by costs for extending its network and start-up costs for new business. Furthermore, there were negative effects from one-off charges incurred in the course of implementing necessary organisational changes aimed at cutting structural costs and increasing the profitability of the business segment.
 
The business segment Air + Ocean generated sales of EUR 633.2 million in the 2012 financial year (2011: EUR 618.4 million). The strongest growth came from the business units South East Asia and Far East Asia. 
 
In contrast, the largest business unit, Europe Middle East, is slightly below the level of sales of the previous year. While the business segment Air + Ocean reported a strong increase in sea freight volumes in 2012, the volume transported by air freight was somewhat below that of the previous year. The operating result amounted to EUR 25.3 million in the reporting year (2011: EUR 24.9 million).

Quelle: LogEastics

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