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Supply Chain Management Volumes Grow for Damco

By Patrick Burnson, Executive Editor
August 20, 2013

As it remains poised to extend its reach into emerging markets, global freight forwarder and logistics services provider Damco reports total revenues of $1,531 million for the first half of 2013 and a post tax operating loss of $2 million (Net Operating Profit After Tax).

Underlying EBITA before special items in the first half of 2013 was $24 million, compared to $34 million in the same period last year. This was slightly less than anticipated, caused by higher-than-planned costs to strengthen and prepare the organization for the future in a number of the growth markets.

Year-on-year growth remains healthy with air freight volumes significantly up (+14%), outperforming the market. Supply chain management volumes grew a very solid 10% while sea freight volumes contracted slightly (-1%).

“In weak markets we continue to invest in building the future with special focus on expanding our geographical coverage and rolling out our new global freight management system” said CEO Rolf Habben-Jansen.

“This is needed to enable future growth and to optimize our cost to serve. We will start seeing the benefits from this later this year and expect to see solid year-on-year improvements in the results from Q4 2013 onwards” he added.

Spokesmen said that in the upcoming quarters Damco does not anticipate a major improvement in the market situation.

Evan Armstrong, president of Armstrong & Associates, ranks the company among the “Top 25” freight forwarders, noting that In 2011, the company had a net turnover of $2.8 billion, managed more than 2.5 million twenty-foot equivalent units (TEUs) in ocean freight and supply chain management volumes, and air freighted more than 110,000 metric tons.


About the Author

image
Patrick Burnson
Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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