Global freight forwarder and logistics services provider Damco recorded total revenues of USD 836 million in Q3 2013, which is on a par with the previous year’s turnover of USD 838 million in the same quarter. The EBIT before Special Items was USD 23 million in this quarter, which compares to USD 34 million in the same period last year. Cash flow from operating activities was USD 30 million, which was largely driven by improvements in working capital.
Volumes developed in line with expectations, with supply chain management up by 10% in the third quarter compared to Q3 2012, while ocean freight volumes were 1% lower. Year-on-year quarterly air freight volumes fell by 15%, due to a large one-off project in 2012, but underlying growth remains healthy.
Continued investments in preparing the company for future growth, including the accelerated roll out of the new Air/Ocean operating system and the strengthening of operational structures in many countries, accounts for the results being below the level of Q3 2012. This investment will continue into the first half of 2014, but the benefits from the investments will become increasingly visible in the results of the upcoming quarters.
“On the back of this ongoing transformation, we have identified the key opportunities for growth, and are now shifting our focus. Damco is more agile which allows us to adapt easily to changing customer needs and market circumstances, and to deliver robust and responsive products and services,” says Damco CEO Rolf Habben-Jansen.
Praising the commitment of Damco’s people, he adds: “We couldn’t do this without the unique quality and open mindset of our people, who are dedicated to continuously lifting the bar on customer service and performance.”
Earlier this year, Damco CEO Rolf Habben-Jansen accepted a new position outside the Maersk Group. In October, Damco announced the appointment of Hanne B. Sørensen as its new CEO. Hanne - currently the CEO of Maersk Tankers - takes up her new role on 1 January, 2014.