HHLA boosts revenue, partly attributed to China's trade relations - Haulage firm HHLA boosts revenue, attributed in part to China trade growth
HHLA Reports Growth and Adjusts Forecast Amidst Changes
Hamburg Port and Logistics AG (HHLA) has reported sustained growth in the latest quarter, with the Dutch manager Jeroen Eijsink set to take over as CEO in October.
The container transport between Hamburg and East Asia, as well as Hamburg and other European seaports, has seen an increase, leading to more cargo handling for HHLA. This growth, partially due to China trade, has contributed to the company's performance.
In the first half of the year, the cargo handling of HHLA's three container terminals in Hamburg increased by 6.9 percent year-on-year to around three million standard containers. The Group revenue grew by 13.2 percent year-on-year to 448.9 million euros in the second quarter.
However, the earnings before interest and taxes (EBIT) increased by 13 percent to 46.8 million euros, but the profit after taxes and considering other shareholders decreased to 11.2 million euros. In response, HHLA slightly adjusted its earnings forecast for the business year, expecting EBIT to be between 195 and 215 million euros (previously 195 to 235 million euros).
The cargo handling of HHLA's foreign container terminals, located in Odessa, Triest, and Muuga (Estonia), developed more strongly. However, the year-on-year comparison is not meaningful due to the temporary closure of the Ukrainian terminal.
HHLA operates container terminals in Hamburg and across Europe, making it dependent on global trade. The entry of MSC, the world's largest container shipping company, into HHLA last November, holding up to 49.9% of the participation company, has been a point of contention.
The Ukrainian terminal temporarily handled no cargo at the waterfront due to a temporary closure. In May, a Russian rocket attack killed three workers at the terminal.
Rüdiger Grube, Supervisory Board Chairman, faced criticism for violating stock corporation law by sitting on too many supervisory boards. Grube announced he would leave the company by the end of the year. Titzrath, HHLA's CEO, unexpectedly announced resignation at the end of June after nine years.
Despite these challenges, HHLA expects slower cargo growth in ports worldwide in the second half of the year. However, specific forecasts for HHLA's cargo growth in the second half of 2021 could not be found in the current search results. For more detailed information, historical company reports or official investor communications from that period may be consulted.
The community at HHLA, given its dependency on global trade and business operations, continues to be impacted by industry changes and global financial markets, making adjustments to its employment policy a recurring necessity. As the company progresses through the second half of the year, investing in measures to galvanize economic growth while addressing industry and finance-related challenges becomes crucial to uphold the performance and profitability of HHLA's container terminals across multiple locations.
