Logwin Group suffers loss of US$46.3 million from January-September

THE Logwin Group has posted January-September 2012 operating income before valuation effects of EUR17 million (US$21.9 million), down from EUR23.8 million in the same period last year.

Overall the group recorded a loss of EUR36 million (US$46.3 million) before interest and income tax (EBIT), after the impairment of goodwill assigned to the business segment Solutions totalling EUR53 million in the second quarter of 2012.

Revenues over the first nine months of the year amounted to EUR1 billion, the same as for the corresponding period a year earlier.

Said Logwin chairman Berndt-Michael Winter: "Even if business performance at Solutions still was clearly below our expectations, Logwin was on the whole still able to hold up well in a weakened economic environment over the first nine months of 2012.

"This development is largely based on our successful sea and air freight activities and on systematic cost management. Contract logistics continue to be impacted by high transportation costs and considerable price pressure. We can see positive perspectives particularly in the capacity utilisation of our retail network and in the continuing optimisation of structures and processes."

The business segment Solutions generated sales of EUR524.7 million in the first nine months compared to EUR542.7 million in the same period of 2011. The Logistics and Warehousing division reported positive volume growth in Central and Eastern Europe. In contrast, the areas of Media and Retail Logistics at Transport and Retail Networks were faced with lower volumes in the reporting period compared with the previous year.

In the air and sea freight segment, sales increased slightly during the reporting period to EUR481.5 million, up from EUR467.2 million in 2011. This was due to the overall increase in freight rates compared with the previous year and to positive growth in sea freight volumes. Air freight volumes in the first nine months were slightly below those of last year. National entities in Asia were able to continue expansion of inner Asian transportation as well as imports from Europe. There was also pleasing development in the region Africa, a company statement said.

Despite a slowdown in economic activity, the business segment Air + Ocean expects to deliver continuing solid economic performance in the fourth quarter of 2012. Development of the business segment Solutions in the remaining three months will also be marked by high cost and competitive pressures as well as by the effects of measures aimed at increasing efficiency.