TUI expects Hapag-Lloyd profits this year to beat predictions

GERMAN travel giant TUI AG, still the biggest individual shareholder in Germany's container line Hapag-Lloyd, has declared the company will "generate higher profits than forecast".

TUI sold its controlling interest in Hapag Lloyd to investors which include the City of Hamburg, Kuhne Holding AG, MM Warburg Bank, HSH Nordbank as well as Signal-Iduna and HanseMerkur insurance groups.

"Since the presentation of the half-year report in mid-May, the positive trend shown by Hapag-Lloyd has strengthened. Transport volumes, and in particular freight rates, have continually improved," said the TUI statement.

TUI, which holds 43.33 per cent of Hapag-Lloyd, said it expects the liner company to "post significantly positive operating earnings", reported American Shipper. Hapag-Lloyd revenues were EUR1.27 billion (US$1.6 billion) in the second fiscal quarter, 13.4 per cent up year on year. Operating profit was EUR13.4 million in the second quarter against a year-on-year loss of EUR221.7 million.
(Source:www.schednet.com)