Logwin increases earnings significantly in the third quarter
- Sales: 1,009.2 million euros / Operating income: 23.8 million euros
- EBIT margin increases to 2.4 %
- Positive net result: 9.3 million euros
Grevenmacher (Luxembourg) – In spite of a slowdown in economic momentum the Logwin Group generated sales of 1,009.2 million euros in the first nine months of the year, maintaining the same level as the previous year (2010: 1,011.0 million euros). Operating income (EBIT) increased by 23.7 % to 23.8 million euros (2010: 19.2 million euros). This led to a rise in the EBIT margin to 2.4 % (2010: 1.9 %). Net result of the Logwin Group at the end of the reporting period amounted to 9.3 million euros (2010: -1.5 million euros). Important factors here were the lower interest charges resulting from the premature redemption of the corporate bond and the disappearance of costs arising from discontinued business operations.
Dr. Antonius Wagner, Deputy Chairman of the Executive Committee (CFO) of Logwin AG explains, “We geared ourselves to deal with the tough market environment and on the whole concluded the third quarter successfully. Performance at the business segment Air + Ocean was pleasing despite declining flows of goods around the world. Solutions showed positive sales growth although the income was impacted by high freight rates and diesel prices. The refinancing of the corporate bond that we carried out is having a very positive effect on net earnings.”
The business segment Solutions generated sales of 542.7 million euros in the first nine months of 2011, exceeding the previous year’s figure by 5.5 % (2010: 514.2 million euros). A major contribution was made by the special networks operating under Transport and Retail Networks as well as General Cargo activities. The latter benefited in particular from continued growth in the automotive sector. Contract logistics activities showed satisfactory development primarily due to the well-filled order books of customers in industry-related fields. However, continuing high capacity-related freight rates and the continuing high price of diesel had a negative effect on earnings. Operating income (EBIT) amounted to 7.7 million euros, which was slightly below the figure for the previous year (2010: 8.1 million euros). The figure for the comparative period in 2010, however, still included proceeds from the sale of fringe activities in the amount of 0.7 million euros.
In the reporting period sales at the business segment Air + Ocean amounted to 467.2 million euros (2010: 496.5 million euros). This represented a decline of 5.9 %, which was above all due to historically low levels of sea freight rates in the third quarter. Transport volumes in sea freight developed slightly above the level for the previous year while air freight volumes were above comparative levels. Despite an increasingly challenging market environment, operating income (EBIT) grew by 22.2 % to 19.9 million euros (2010: 16.3 million euros).
Logwin AG’s equity ratio climbed to 36.7 % (31 December 2010: 32.6 %). Net cash flow amounted to -5.7 million euros.
Although the Logwin Group expects a seasonal fall in volumes for the fourth quarter, it still maintains its objective for the current year of raising the level of profitability achieved in 2010. An improved financial result is anticipated thanks to reduced interest expenses. Combined with the disappearance of costs from the discontinued business operations, this will contribute to higher group earnings compared with the previous year.
The nine-month financial report 2011 of the Logwin Group is available on the Internet at: www.logwin-logistics.com
Dominique Simone Klopp
Phone: +352 719690-1354
Fax: +352 719690-1359
Phone: +352 719690-1112
Fax: +352 719690-1359
Logwin AG | ZIR Potaschberg | 5, an de Laengten | 6776 Grevenmacher | Luxembourg