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Hapag-Lloyd posts US$231.6 million loss as it moves towards CSAV merger
GERMANY's Hapag-Lloyd, nearing its merger with Chile's Compania Sud Americana de Vapores (CSAV), has posted a first half net loss of EUR173.3 million (US$231.6 million) drawn on revenues of EUR3.21 billion.
"The fact that we ended up with this unsatisfactory result despite clear efforts to cut costs is down to the disappointing development of freight rates across all trades," said Hapag-Lloyd CEO Rolf Habben Jansen.
"We'll continue to cut costs and our merger with CSAV will enable us to realise synergies worth at least US$300 million per annum in the future', he said.
The company shipped 5.8 per cent more cargo with throughput totalling 2.9 million TEU, but rates fell in first half by $98 per TEU year on year to $1,424 per TEU, said the company statement.
Hapag-Lloyd reduced transport expenses by EUR79 million to EUR 2.9 billion in the first half, despite a sizeable increase in volume. Overall, transport expenses per TEU were $1,372 in the first half - $57 per TEU less year on year.
The CSAV merger is still subject to the approval of a dozen competition authorities worldwide. But the first major milestone was passed in July, when US authorities approved the deal.
The transaction is expected to be concluded in the fourth quarter. Already, preparations are under way to integrate CSAV's container business into Hapag-Lloyd.
"In view of the negative impact on earnings in the first half, Hapag-Lloyd aims for a positive operating result for 2014 as a whole, albeit clearly lower than in 2013," said the company statement.
"The fact that we ended up with this unsatisfactory result despite clear efforts to cut costs is down to the disappointing development of freight rates across all trades," said Hapag-Lloyd CEO Rolf Habben Jansen.
"We'll continue to cut costs and our merger with CSAV will enable us to realise synergies worth at least US$300 million per annum in the future', he said.
The company shipped 5.8 per cent more cargo with throughput totalling 2.9 million TEU, but rates fell in first half by $98 per TEU year on year to $1,424 per TEU, said the company statement.
Hapag-Lloyd reduced transport expenses by EUR79 million to EUR 2.9 billion in the first half, despite a sizeable increase in volume. Overall, transport expenses per TEU were $1,372 in the first half - $57 per TEU less year on year.
The CSAV merger is still subject to the approval of a dozen competition authorities worldwide. But the first major milestone was passed in July, when US authorities approved the deal.
The transaction is expected to be concluded in the fourth quarter. Already, preparations are under way to integrate CSAV's container business into Hapag-Lloyd.
"In view of the negative impact on earnings in the first half, Hapag-Lloyd aims for a positive operating result for 2014 as a whole, albeit clearly lower than in 2013," said the company statement.
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