FRANKFURT, Aug 12 (Reuters) - Germany’s Hapag-Lloyd’s said it expected operating profit to drop considerably this year after tough competition in container shipping dragged freight rates lower in the second quarter.
The company, partly owned by TUI AG, posted a second-quarter operating loss of 73.7 million euros ($98.5 million), compared with an operating profit of 13.5 million euros a year earlier.
“The fact that we ended up with this unsatisfactory result despite clear efforts to cut costs is down to the disappointing development of freight rates across all trades,” Chief Executive Rolf Habben Jansen said in a statement on Tuesday.
Its quarterly net loss widened to 173.3 million euros from 72.7 million a year earlier, including one-off costs from the takeover of Chilean shipping Compania SudAmericana de Vapores’s (CSAV) container business.
$1 = 0.7479 euro Reporting by Ludwig Burger; Editing by Maria Sheahan