International logistics group Damco has revealed that it enjoyed growth in both net revenue and gross profit during the opening three months of the year, as both sea and airfreight showed improved results on the same period of 2011.
According to Damco, which is the global logistics business unit of AP Møller-Maersk, net revenue climbed by US$53m to a total US$738m, while Gross profit increased 8 per cent on a year-on-year basis.
Net profit for the period came in at US$7m, stable from the corresponding period last year, and while trading was in line with 2011, although results were negatively impacted by the costs associated with the recent restructuring of Damco's European activities into mature and developing markets.
'This result showed that Damco's commercial strategy of increased focus on large and medium-sized customers in selected industry verticals and enhanced local field sales is delivering the performance expected,' the group noted.
Total ocean volumes increased by 6 per cent during the quarter, slightly ahead of the market, while the airfreight tonnage more than doubled.
'I am pleased to see that we are making good progress under difficult market conditions,' noted chief executive officer Rolf Habben-Jansen. 'Our growth bears testament to the resonance our supply chain services are finding with customers.
'We will absorb additional costs in the first two quarters because of the restructuring of our European region into East and West,' he added. 'This is the right thing to do to position us for the years to come. When the changes are all implemented at the end of Q2, Damco will be in a stronger position to address the very different needs of these diverse markets.'
