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Downturn causes port group HHLA to shrink profits

High energy costs and the looming economic downturn are slowing down the port logistics group HHLA.

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Downturn causes port group HHLA to shrink profits

High energy costs and the looming economic downturn are slowing down the port logistics group HHLA. Earnings before interest and taxes (EBIT) in the port business shrank by a good fifth to around 54 million euros in the third quarter, as the company announced on Monday in Hamburg.

The decline was dampened by the fact that HHLA benefited from further increases in storage fees for containers, since the shipping companies are leaving steel boxes in the port longer due to the supply chain delays. The Executive Board confirmed the outlook for the year as a whole.

In the group, which, in addition to the listed port logistics and the intermodal business with transports by rail and truck, also includes the smaller real estate division, operating profit fell by around 18 percent to almost 59 million euros. Sales climbed by a good six percent to 393 million euros. "The war in Ukraine, the high energy prices, rising personnel and procurement costs, the disruptions in the global supply chains and the increasing tendencies towards a recession are also affecting our business," said CEO Angela Titzrath.

She did not go into the dispute over the participation of the major Chinese shipping company Cosco in the operating company of an HHLA terminal. After a lengthy tug-of-war, the federal government decided to allow Cosco a maximum share of 24.9 percent in the terminal instead of the originally targeted 35 percent. This means that the Chinese group is prevented from influencing the management of the terminal's operating company.

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