Hapag-Lloyd beats expectations.
GERMAN container line Hapag-Lloyd performed better than had been expected in the first quarter of the 2009-10 fiscal year, but remains deep in the red.
The latest update was provided by shareholder Tui which attributed the better results to substantial freight rate increases that were achieved on some routes.
But below the bottom line, ?the business of Hapag-Lloyd remained affected by the global economic crisis,? Tui said.
Turnover decreased by 28% to around ?1.2bn ($1.6bn) compared with ?1.6bn previously.
This reflected a 13% fall in transport volumes and a 16% decline in average freight rate levels year-on-year. With a loss of ?21m compared with a deficit of ?8m in the corresponding quarter a year earlier, operating earnings (underlying Ebita) remained negative but improved considerably by ?219m versus the prior quarter, said Tui.