HHLA Lowers Annual Forecast by Over 25 Percent

The Hamburger Hafen und Logistik AG (HHLA) is adjusting its annual forecast for the current financial year based on the preliminary business figures for the first six months. The ongoing war in Ukraine, geopolitical tensions, inflation, and rising interest rates are putting pressure on consumer and industrial demand, further slowing the global economic recovery after the pandemic.

(Hamburg) Several economic research institutes have recently revised their forecasts for the German economic development downwards, including the International Monetary Fund. The business development of HHLA reflects this sentiment. The significant decline in volume due to economic conditions recorded in the first quarter of 2023 has continued in the second quarter of the current year.

In light of this development, the port logistics division now expects a significant decline in container throughput compared to the previous year (previously: slight increase) as well as container transport at the level of 2022 (previously: moderate increase compared to the previous year). Revenue is now expected to see a significant decline (previously: slight increase). This development is attributed to a volume-related strong decline (previously: moderate decline) in revenues in the container segment, which cannot be compensated by a significant increase (previously: strong increase) in revenues in the intermodal segment. The expectation for operating profit (EBIT) has been adjusted accordingly and now lies in the range of €100 to €120 million (previously: in the range of €145 to €175 million). Within this range, a strong decline in the container segment and a slight decline (previously: moderate increase) in the intermodal segment EBIT compared to the previous year are still assumed.

For the real estate division, revenue development is still expected to be at the level of the previous year, along with a significant decline in operating profit (EBIT). Overall, a significant decline (previously: moderate increase) in revenues is expected at the group level. The operating profit (EBIT) will be in the range of €115 to €135 million, given the changed assumptions (previously approximately €160 to €190 million).

Complete Business Figures on August 15

In light of the previously mentioned volatile environmental conditions, the outlook remains fraught with significant uncertainties. HHLA will publish the complete annual figures for January to June 2023 on Tuesday, August 15, 2023, at 7:30 AM. EBIT is defined as earnings before interest and taxes. Detailed information: here

Photo: © HHLA/Thies Rätzke / Image Caption: Significant decline in container throughput expected. Here is the HHLA Terminal Altenwerder in the Port of Hamburg