DGAP-News: Logwin AG: Economic crisis puts strain on Logwin's development in 2009 - Logwin Group focuses on Solutions and Air + Ocean
(firmenpresse) - Logwin AG / Final Results
10.03.2010 07:01
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Economic crisis puts strain on Logwin's development in 2009 -
Logwin Group focuses on Solutions and Air + Ocean
- Abandonment of the business segment Road + Rail as a result of strategic
realignment
- Continuing business operations: sales 1,113.0 million euros; EBIT 9.7
million euros
Grevenmacher (Luxembourg) - The Logwin Group has adapted its business model
to match the long-term challenges of the logistics market and has
significantly reduced its land transportation activities. Following the
successful integration of its German General Cargo activities into
Solutions and the sale of nearly all other Road + Rail activities, the
business segment Road + Rail is being abandoned and is therefore reported
in the group's consolidated financial statement for 2009 as discontinued
business operations.
Berndt-Michael Winter, Chairman of the Executive Committee (CEO) of Logwin
AG comments, 'We are focusing on the multifaceted development opportunities
in our business segments Solutions and Air + Ocean. However, we still
remain an integrated logistics service provider with comprehensive
logistics and transport solutions expertise. We will be offering access to
general cargo networks via our strong partners and through cooperation.
This focus makes us leaner, more efficient and thus fit for the future.'
Business development 2009 - continuing business operations
In the fiscal year 2009 the Logwin Group generated sales in its continuing
business operations of 1,113.0 million euros (2008: 1,407.6 million euros).
Cuts in production, particularly in the automotive industry, drastic falls
in trading volumes and very low freight rates resulted in a decline in
sales of 20.9 %. In difficult economic conditions the group achieved an
operating income (EBIT) of 9.7 million euros (2008: 28.8 million euros). In
the reporting period an impairment on assets of 1.4 million euros was made.
The economic downturn had a severe impact on business development at
Solutions. Sales amounting to 690.4 million euros were 20.2 % below those
of the previous year (2008: 865.7 million euros). Operating result (EBIT),
at 1.0 million euros, was significantly below the previous year's result
(2008: 12.3 million euros) due to a fall-off in demand and volumes caused
by the economic situation and the current price pressures in the logistics
industry.
The business segment Air + Ocean generated sales of 423.9 million euros in
the fiscal year 2009 (2008: 553.3 million euros). Market-related lower
customer demand, the resultant weak volume growth and the sharp decline in
freight rates were the main causes of the 23.4 % decrease in sales.
Operating result (EBIT) amounted to 14.2 million euros (2008: 23.5 million
euros). In a difficult market environment, the EBIT margin maintained a
pleasing level of 3.3 %.
Business development 2009 - discontinued business operations
The business segment Road + Rail generated sales of 514.6 million euros
(2008: 687.2 million euros). This represents a decrease of 25.1 %.
Operating result (EBIT) fell to -16.1 million euros (2008: -5.5 million
euros). As a result of the divestments and closures, which have already
been completed to a large extent, there were one-time expenses as well as
accounting profits and losses totaling -36.6 million euros. In view of the
planned reduction of land transportation activities, a full goodwill
impairment loss was already made on the business segment Road + Rail
amounting to -27.3 million euros.
Cash flow and current assets
The net cash flow for the overall group (including discontinued business
operations) was 7.7 million euros (2008: 12.3 million euros). Cash and cash
equivalents increased to 64.6 million euros (2008: 63.2 million euros).
The new Logwin Group
With its realignment of the group, Logwin has made a far-reaching response
to the economic crisis and its consequences for the logistics industry. In
the business segment Solutions, special focus will in future be placed on
the product and market combinations of Fashion, Media, Retail and
industrial sectors such as automotive and engineering. 'We already have an
excellent market position with our Fashion network and the time-critical
distribution systems at Media. We will be expanding these activities to
form a flexible retail network for store logistics and at the same time
continuing to develop our warehousing activities', says Berndt-Michael
Winter.
Logwin will continue the targeted expansion of its worldwide network of
locations in the business segment Air + Ocean and further intensify
customer relationships via its key account management in order to be able
to maintain attractive margins in the face of rising freight rates. 'We are
already well placed with our Air + Ocean activities', according to Winter.
In addition to the profound reorganization, operational measures have been
taken throughout the group in order to combat the crisis. In addition to
cutting the costs of material and investment, personnel-related measures
have been taken in the operating units as well as in administration and,
ultimately, staff cuts have been made.
Outlook
It is assumed that there will be a steady development in sales for the
continuing business segments starting from the comparatively low level of
the reporting year. The new strategic direction and the cost-saving
measures initiated will have a positive effect on earnings.
The Annual Report 2009 of the Logwin Group and the Financial Statement of
Logwin AG are available at: www.logwin-logistics.com
About Logwin AG
As an external partner, Logwin AG, Grevenmacher (Luxembourg), develops a
comprehensive range of logistics and service solutions for trade and
industry. In 2009, the group generated sales of 1.1 billion euros and
currently employs approximately 5,500 staff. Logwin operates in all main
markets worldwide and has locations across all continents. With its two
business segments Solutions (customer-focused contract logistics solutions)
and Air + Ocean (global air and sea freight activities), Logwin AG is one
of the leaders in the market.
Logwin AG is listed in the Prime Standard of the Deutsche Börse. The
majority shareholder is DELTON AG, Bad Homburg (Germany).
Contact:
Mara Hancker, Head of Public Relations
P: 00352/719690-1353, F: 00352/719690-1359
pr-info(at)logwin-logistics.com
Peer Brauer, Head of Investor Relations
P: 00352/719690-1112, F: 00352/719690-1359
ir-info(at)logwin-logistics.com
10.03.2010 07:01 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Logwin AG
an de Längten 5
L-6776 Grevenmacher
Luxemburg
Phone: +352 719 690 0
Fax: +352 719 690 1359
E-mail: ir-info(at)logwin-logistics.com
Internet: www.logwin-logistics.com
ISIN: LU0106198319
WKN: 931705
Indices: Prime All Share (PXAP), Classic All Share (CLXP), DAXsector
All Transportation&Logistics (4N87), DAXsector
Transportation&Logistics (CXPL), DAXsubsector All Logistics
(4N99), DAXsubsector Logistics (I1LB)
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
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