German ocean carrier Hapag-Lloyd reported $986 million operating loss in the first nine months of 2009, citing massive declines in cargo volumes and dwindling ocean freight rates.
Revenue for the carrier, Germany's largest, shrank by 29 percent during the first nine months of the year, ending at $4.8 billion compared to $6.7 billion in the same period a year ago.
German tourism group TUI, which owns a 43.3 percent stake in Hapag-Lloyd, said that the losses were expected to continue through the end of the current financial year. Other major investors predicted that the losses would continue through 2010.
TUI provided Hapag-Lloyd with a $1 billion infusion of financial aid in October, and the carrier also received loan guarantees worth $1.8 billion from the German federal government and the City of Hamburg.
In related news, TUI's largest shareholder, John Fredriksen, failed in his third attempt to gain a seat on the TUI Board of Directors.
Tuesday, December 15, 2009
