05.05.10
Logwin experiences slight upturn in the first quarter – Clear growth in sales and earnings
- Continuing business operations: sales 320.7 million euros; EBIT 7.4 million euros
- Disposal of Road + Rail activities largely complete
Grevenmacher (Luxemburg) – The Logwin Group generated sales of 320.7 million euros in its continuing business segments in the first quarter. This represents an increase of 13.3 % over last year. (2009: 283.1 million euros). The main contributors to sales growth were the partially growing demand for logistics and transportation services and the considerable increases in freight rates since the middle of 2009. Operating income (EBIT) amounted to 7.4 million euros, which was significantly above the previous year (2009: 5.0 million euros).
Berndt-Michael Winter, Chairman of the Executive Committee (CEO) of Logwin AG comments, “ We experienced a slight upturn in the first quarter of 2010 thanks to the incipient economic recovery. At the same time, we are also benefiting from the cost-cutting measures that we have been systematically pursuing and from our increased focus on sales. Even though the recovery in the markets still has to prove to be stable in the long run, we are satisfied with the way the Logwin Group began 2010.”
At 6.8 million euros, the operating cash flow of the Logwin Group showed a positive development at the end of the reporting period (2009: 4.6 million euros). The growth in working capital is primarily due to the higher volume of business compared with the very weak first quarter of the previous year.
The business segment Solutions generated sales of 175.1 million euros in the first three months of 2009, approximately in line with those last year (2009: 178.9 million euros). Growth in volumes for general cargo, automotive and chemicals activities were especially pleasing compared with last year. Operating result (EBIT) at Solutions almost doubled compared with the same period last year to 4.4 million euros (2009: 2.2 million euros). As a result, the operating margin increased to 2.5 %.
The business segment Air + Ocean generated sales in the reporting period of 145.5 million euros (2009: 105.5 million euros). This sales growth of 38.0 % was primarily the result of a revival in the markets of the business units Europe Middle East and Far East and of steadily increasing freight rates. Operating result increased to 4.8 million euros (2009: 4.0 million euros). The operating margin reached 3.3 %.
Abandonment of the business segment Road + Rail – Transactions largely completed
The Logwin Group sold off almost all activities of the business segment of Road + Rail in the second half of 2009 and in the first quarter of 2010 as a consequence of the realignment of its business model and the associated major reduction in its land transportation activities. The transactions that were still pending approval by the competition authorities at the time of publication of the annual financial statements for 2009 have now been concluded.
Outlook
The Logwin Group assumes that there will be a steady growth in sales for the continuing business operations starting from the comparatively low level of the fiscal year 2009. By focusing on the business segments Solutions and Air + Ocean the Logwin Group has made itself leaner and more efficient. This, together with the cost-saving measures that have been initiated, will have a positive effect on its earnings situation.
Comments on continuing and discontinued business operations
The Logwin Group made a considerable reduction in its land transportation activities in 2009 and the first quarter of 2010 and as a result abandoned its business segment Road + Rail. Those Road + Rail activities in Germany that affect major Solutions customers were already transferred to Solutions in the middle of 2009, where they operate under the title of General Cargo. The activities that were abandoned or sold off and the remaining operations of the abandoned business segment Road + Rail are reported as discontinued business operations in accordance with IFRS 5. Continuing business operations comprise the business segments Solutions and Air + Ocean as well as general expenditures that cannot be attributed to the business segments.
The quarterly financial report of the Logwin Group is available on the Internet under: www.logwin-logistics.com
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 2009, the group generated sales of 1.1 billion euros and currently employs approximately 5,500 staff. Logwin operates in all main markets worldwide and has locations across all continents. With its two business segments Solutions (customer-focused contract logistics solutions) and Air + Ocean (global air and sea freight activities), Logwin AG is one of the leaders in the market.
Logwin AG is listed in the Prime Standard of the Deutsche Börse. The majority shareholder is DELTON AG, Bad Homburg (Germany).
Contact::
Mara Hancker
Public Relations
Phone:: +352 719690-1353
Fax: +352 719690-1359
pr-info@logwin-logistics.com
Peer Brauer
Investor Relations
Phone:: +352 719690-1112
Fax: +352 719690-1359
ir-info@logwin-logistics.com
Logwin AG | ZIR Potaschberg | 5, an de Längten | 6776 Grevenmacher | Luxemburg
