Damco recorded significant growth in 2012, and all products grew volume well ahead of the market.

DAMCO12525 FebruaryDamco, one of the world’s leading freight forwarding and logistics service providers today reports a 19% increase in net revenue compared to 2011. Net revenue in 2012 increased to 3,272 million USD, from 2,752 in 2011. Gross profit saw a rise of 7% to 807 million USD in 2012.
 
“I am satisfied about our solid results for 2012”, comments Rolf Habben-Jansen, CEO of Damco.
“We continue to grow and develop our business, in spite of continued difficult market conditions. I am particularly pleased that we have taken full advantage of our acquisition of NTS, and that all of our products continue to grow organically faster than the market. In addition to that we have made a number of strategic changes and invested a lot in the future – which masks the underlying trading of our business which is better than the pure numbers show, and that also gives us a lot of confidence going into 2013. This stems from a lot of hard work from everybody across our network”, he adds.
 
Volumes are also up
Damco shipped 6% more ocean volumes compared to 2011.
Airfreight tonnage almost doubled, recording a growth over last year of 91%. The rapid growth in airfreight was partly due to the full year effect of the acquisition of NTS (a China-based freight forwarder) in August 2011, but also excluding that effect Damco’s growth in Airfreight was well into double digit percentages.
Supply Chain Management volumes returned to growth and ended 5% higher than last year.
A lot of change for Damco in 2012
The worsening market conditions as well as implementation costs related to new business, the restructuring in Europe and the cost associated with the HQ relocation caused downward pressure on Damco’s unit margin profitability, which had a negative impact on Damco’s performance in 2012. EBIT for 2012 was USD 93m (USD 97m).
Early in 2012 Damco announced a restructuring of its European operations, which were split in East and West Europe regions.
In September, Damco announced the relocation of the global headquarters from Copenhagen, Denmark, to The Hague, The Netherlands. The move is scheduled to be completed in Q1 2013.
 
In October, Damco acquired the freight forwarder Pacific Network Global Logistics, which significantly strengthened its position in Oceania.
2012 key financial figures and volume
Net Revenue 2011 Q4 2011 Q4 2012 Full year 2012 Change %
Total (million USD) 2,752 597 880 3,272 19%
Gross profit 2011 Q4 2011 Q4 2012 Q4 YTD 2012 Change %
Total (million USD) 757 190 216 807 7%
EBIT 2011 Q4 2011 Q4 2012 Q4 YTD 2012 Change %
Total (million USD) 97 26 16 93 -4%
Volume 2011 Q4 2011 Q4 2012 Q4 YTD 2012 Change %
Ocean (TEU)   749,500 194,800 201,500 797,700 6%
Air  incl. NTS (tonnes)  110,100 42,600 60,600 210,600 91%
SCM (‘000 CBM)  46,600 11,400 11,800 48,800 5%
 
For more on Damco, please visit www.damco.com
 
Further information
Victor Shieh, Press Consultant, Damco
Eric Herman, Global Chief Commercial Officer, Damco
About Damco
Damco is one of the world’s leading third party logistics providers specialising in customised freight forwarding and supply chain solutions. The company has 11,300 employees in over 300 offices across 90 countries and representation in a further 30 countries. In 2012, the company had a net turnover of USD 3,3 billion, managed more than 2,7 million TEU of ocean freight and supply chain management volumes and air freighted more than 210,000 tonnes. Damco is part of the A.P. Moller – Maersk Group. www.damco.com
SOURCE: Submitted by Damco