Steady market growth for Damco in Q1
This result shows that Damco’s commercial strategy of increased focus on large and medium sized customers in selected industry verticals and enhanced local field sales is delivering the performance expected.
Both ocean and airfreight volumes showed improved results on 2011. Total ocean volumes increased by 6%, slightly ahead of the market, while Damco’s airfreight tonnage more than doubled. This reflects the acquisition of Chinese air freight forwarder NTS in August 2011, as well as a number of large customer wins. Excluding NTS, Damco secured a highly satisfactory volume growth of 37%, in spite of an overall declining airfreight market.
SCM volumes remained at 2011 levels. As several newly secured customers are being implemented in Q1 that trend is expected to improve from Q2 onwards.
“I am pleased to see that we are making good progress under difficult market conditions. Our growth bears testament to the resonance our supply chain services are finding with customers,” commented Damco CEO, Rolf Habben-Jansen.
Restructuring Europe
Damco’s profit for the period was USD 7m (USD 7m in 2011) and ROIC was 8.2% (14.7% in 2011). EBIT was USD 13m (USD 16m in 2011) and EBIT margin was 1.8% (2.3% in 2011). Trading was in line with last year, but results were negatively affected by the costs associated with the recent restructuring of Damco’s European activities into mature and developing markets.
“We will absorb additional cost in the first two quarters because of the restructuring of our European region into East and West. This is the right thing to do to position us for the years to come. When the changes are all implemented at the end of Q2, Damco will be in a stronger position to address the very different needs of these diverse markets,” said Damco CEO, Rolf Habben-Jansen.
For more information:
Douglas Cole
Damco USA Inc.
Tel: +1 973 514 5126
douglas.cole@damco.com
www.damco.com