Damco relocation set for February

11/14/2012

The logistics arm of AP Moller-Maersk saw its net profit decline to US$15 million in the third quarter of the year from $25 million in the same period of 2011.

However, this was after a provision of $5 million was made for Damco’s relocation early next year from Copenhagen to the Hague. 

Its bottom line was also hit by $10 million of other "one-off" restructuring costs, as well as costs related to the acquisition of an Australian forwarder.

Nevertheless, on the top line, Damco grew its revenue by 11% in the first nine months of 2012, compared with the same period of last year, and posted $50 million of net profit, versus $46 million in the previous year.

In terms of freight numbers, Damco’s ocean freight volumes grew by a better-than-market 5% in Q3 and by 7% for the nine month period. 

Its air freight volumes soared by 122% in the nine months, year on year – the effect of its acquisition of Chinese air freight forwarder NTS.

Damco CEO Rolf Habben-Jansen said a target date of 1 February 2013 had been set for the company’s relocation to the Netherlands.

On the interim results, he said: "We have in this period further strengthened the foundation of our business and our results underline that we are moving in the right direction."

The end of October saw the completion of Damco’s purchase of Australia-headquartered forwarder Pacific Network Global Logistics