Crisis targets achieved under difficult market conditions

Bremen, 26 April 2010 +++ Despite the difficult market conditions, the EUROGATE Group achieved its set targets for 2009. Although the Group recorded a decline in revenue of 17.3% to EUR 591.4 million, net profit for the year amounted to EUR 47.8 million, 59% lower than in the previous year. EUROGATE responded sooner and faster than other market participants to the economic crisis and cut investments by 59.5% to EUR 96.7 million. Additionally, the Company implemented a cost-savings programme in the amount of EUR 76.6 million. Thanks to these measures, it was possible to secure jobs within the EUROGATE Group in 2009. In the meantime, this job guarantee has also been extended to 2010. With a high equity ratio of 41% (previous year: 38.6%), the Group is well-positioned to weather the challenges of the coming years, for which a gradual recovery is forecast.

Thomas Eckelmann, Chairman of the EUROGATE Group Management Board: “The 2009 fiscal year was characterised by the worst economic crisis since the Second World War. Container handling volumes across the EUROGATE Group fell Europe-wide by 12.3%. Despite this decline, EUROGATE achieved a stable and respectable result compared to the market as a whole. We succeeded in guaranteeing jobs and generating a positive operating result. Nevertheless, the economic crisis has set us back in our development by five years. We have had to postpone investments, but are forging ahead with our major projects, such as the expansion westward of the Hamburg terminal. As things stand, this will ultimately be available in 2017/2019, and as the key port construction project at the port of Hamburg will contribute to its competitiveness. We are also standing by our commitment to the terminal project in Wilhelmshaven, and will do everything in our power to ensure its success.”

Employment
Thanks to an extensive cost-savings programme, the EUROGATE Group was able to secure jobs in 2009. Short-time work was introduced at the Bremerhaven location on 2 May 2009. The Hamburg terminal responded to the drop in container handling volumes by not employing any staff from the manpower services provider, GHB (Gesamthafenbetriebsverein), and drastically reducing overtime work. EUROGATE executives as well as non-tariff employees have voluntarily agreed to take a 5% pay cut. For 2010, EUROGATE has initiated additional measures. These include introduction of an early retirement incentive for employees at the Bremerhaven location born up to 1952, offering temporary employees part-time employment contracts, offering trainees part-time contracts and extending the flexibility of shift schedules.

Environmental management
The link between ecology and economy is gaining in importance, economic crisis or not. EUROGATE is conscious of its responsibility towards preserving nature and protecting resources and has formulated a clear eco-management strategy. Maximising efficiency, minimising emissions and maximising safety and precautions are the company’s environmental goals. This includes systematic capture of environmental data as well as preparing an environmental report and a CO2 balance sheet.

Outlook
It will be some time before container handling volumes at the seaports again reach the record highs of 2008. The EUROGATE Group is strategically well-positioned in the market and is looking optimistically to the future, despite the still challenging general conditions. The deepening of the shipping channel in the Outer Weser and Elbe rivers as well as the modernisation of the Kiel Canal are the decisive infrastructure projects of the next few years in order to secure Germany’s competitiveness as a location compared to the Benelux ports. The political powers that be must ensure that Germany‘s competitive disadvantages are removed and that comparable framework conditions are established for all seaports in northern Europe. This also applies in similar measure to the transhipment ports in southern Europe. From today’s perspective, EUROGATE is anticipating a stable revenue and earnings development for 2010. EUROGATE also supports the “Seaports of Germany” initiative aimed at reinforcing the location of the German seaports.

Visit us at the transport logistic China 2010 in Shanghai at the joint “Seaports of Germany” stand in Hall E2, 215/316.

About EUROGATE:
EUROGATE is the Number One container terminal logistics Group in Europe. Jointly with Contship Italia, the network operates ten container terminals from the North Sea coast to the Mediterranean area. One new sea terminal in Wilhelmshaven is currently under construction. The range of services is rounded off by intermodal transport and specialised logistics management. EUROGATE was established in 1999. In 2009 the Group handled 12.5 million TEU. More information under www.eurogate.eu.