Wide currency fluctuations due to the debt crisis in Europe ate into the profits of Hapag-Lloyd, whose revenue in the third quarter ended September 30, 2011 fell 13 percent to EUR1.54 billion ($2.1 billion) from EUR1.7 billion year-over-year.
Meanwhile, earnings before interest and tax (EBIT) fell to EUR34.1 million from EUR263.6 million a year ago.
“The group’s earnings, financial and net asset position were considerably affected by exchange rate movements between the euro and the dollar in the first nine months of the 2011 financial year,” Hapag-Lloyd said in its third-quarter report. “On average over the year the US dollar weakened to USD/EUR 1.41 (9M 2010: USD/EUR 1.32), whereas the exchange rate on the reporting date of USD/EUR 1.35 was virtually unchanged compared with year-end 2010.”
The Hamburg-based shipping line also said that it had to contend with lower freight rates in the trade lanes going to and from Asia, which where due to rising competition, and higher transport expenses as a result of increasing energy costs.
In the first nine months of the financial year 2011, Hapag-Lloyd’s consolidated revenue fell by EUR166 million to EUR4.5 billion due to exchange rate movements. Adjusted for these exchange rate movements, revenue rose by around 3 percent compared with the same period last year.
Other operating income for the first nine months was significantly higher at EUR111.7 million compared to EUR88.9 million in the previous year. This was largely due to positive earnings contributions of EUR57.9 million from derivative financial instruments, the company said.
Photo from Hapag-Lloyd
