Damco’s airfreight sector saw exponential growth in the first half of 2012, with volumes rising 135 percent, year-over-year. Although Damco attributed much of this increase to its August 2011 acquisition of Chinese airfreight forwarder New Times Transportation, the company’s air cargo business still recorded underlying organic growth of 42 percent, year-over-year, during the first half of 2012.
Also rising was Damco’s net revenue, which surged 12 percent, year-over-year, to $1.543 billion during the first half of 2012. The global freight forwarder’s gross profit and EBIT also rose during this period, increasing 5 percent and 42 percent, year-over-year, respectively.
Despite double-digit growth, Damco explained in a press release that the company’s EBIT was negatively affected by the restructuring of its European activities. The freight forwarder also revealed that it “invested more than planned” when launching new business operations, further hindering EBIT. Even so, the sale of Damco’s Chinese warehousing facilities greatly offset these declines, according to the press release.
Company CEO Rolf Habben-Jansen said he’s impressed with Damco’s performance in the first half of the year, remarking that his company is “on the right path.” After all, he said, Damco’s new business wins are up by more than 20 percent, year-over-year.
“We continue to win more and more regular customers in our target industry verticals — despite the challenging market conditions in a number of key markets,” Habben-Jansen said in a statement. “We expect that for the full year 2012 we will deliver above-market growth in all of our main products — and our EBIT in 2012 will again be better than in 2011.”
The global freight forwarder will also be relying heavily on its seafreight sector to achieve this goal. Fortunately, Damco’s oceanfrieght business has been performing well, with volumes surging 9 percent, year-over-year, during the first half of 2012.