Damco Reports Year-on-Year Revenue Increase of 6% in First Quarter With a Profit of 6 Million Dollars

Damco records above-market growth in air freight volumes (15%) and supply chain management volumes (10%) compared with last year, invests in the future with new global IT system

DAMCO12523rd MayDamco, one of the world’s leading freight forwarding and logistics service providers, reports a 6% increase in Quarter 1 net revenue with a total of 773 million USD, compared to 728 million USD in 2012. EBIT ended up at 9 million USD for the first quarter, compared to 13 million USD in 2012.

Airfreight volumes showed rapid growth of 15% over 2012 which was well ahead of the market, enhanced by the acquisition in last quarter of 2012 of Pacific Network Global Logistics (PacNet). Q1 2013 Ocean freight volumes were up only slightly compared to the same period last year, at a modest growth rate of 1%.

Supply Chain Management volume growth accelerated further in Q1 2013 with 10% growth versus the same period last year, mainly driven by the impact of new customers and a strong pre-Chinese New Year uptake in volumes.

“Overall our performance in Q1 has been satisfactory, with solid growth in most products and underlying trading only slightly below 2012. In Q1 we made significant investments to adjust our business model – in light of the changing market – to make it more scalable and to enable further growth and profit improvement in the years to come. We will continue to make investments in the upcoming quarters, even if that will impact our reported results. This quarter we also completed the headquarters’ relocation, have made very good progress in rolling out our new Unity global IT platform and have successfully integrated the PacNet acquisition’’, comments Rolf Habben-Jansen, CEO of Damco.

He adds:

“In 2013 we will be taking some important steps forward in simplifying our business and further raising the efficiency of our operations. We are also planning to invest in growing our geographical footprint as we would like to be there where our customers need us to be in the future, which will mean expanding our network from around 350 to 600 offices over the next three years.” 

QUARTER 1 key financial figures (USD million)

Highlights

Q1 2013

Q1 2012

Net Revenue

773

728

Gross Profit

195

185

EBITA before special items

13

16

EBIT

9

13

Tax

3

6

Net Operating Profit After Tax (Segment Result)

6

7

 

For more on Damco, please visit www.damco.com

 

 

 

Further information

Victor Shieh, Press Consultant, Damco

Phone: +32 (0)473 980855

Mail: victor.shieh@damco.com

 

Eric Herman, Global Chief Commercial Officer, Damco

Phone: +31 (0)703023801

Mail: eric.herman@damco.com

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 10,800 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