Logwin’s Earnings Development Influenced by Corona

The Logwin Group is also feeling the impact of the Corona pandemic and is accordingly adjusting its forecasts published in the financial report for the fiscal year 2019 for the current fiscal year. The first effects are already noticeable in the report for the first quarter of 2020.

(Grevenmacher, 30.04.2020) – The development of the global economy in the first quarter of 2020 is characterized by the economic impacts of the Corona pandemic. Leading economic research institutes now expect a global recession, the extent of which depends on the duration of the pandemic and the associated restrictions on the economy. The disruptions to global trade caused by Corona and the effects on brick-and-mortar retail and industrial production have a significant impact on the logistics markets relevant to Logwin.Assets, Financial and Earnings SituationLogwin’s revenue fell by 4.5% to €270.8 million in the first three months of 2020 (2019: €283.5 million). The Air + Ocean segment generated revenue of €180.5 million, which was €6.6 million below the previous year, primarily due to slightly declining volumes in sea freight and air freight. The Solutions segment reported revenue of €90.4 million, below the previous year’s figure of €96.4 million, due to the effects of the Corona pandemic on network activities in the retail sector and the termination of various customer contracts.Logwin achieved an operating result of €9.4 million in the first three months of 2020 (previous year: €12.1 million). The Air + Ocean segment was below the previous year’s level due to volume declines in sea freight and air freight as well as declining margins. The effects of the Corona pandemic initially had significant negative impacts on Logwin’s Asian activities during the first quarter of 2020. The economic recovery in Asia at the end of the reporting quarter was overshadowed by the severe negative impacts, especially in sea freight, also in Europe and the rest of the world. Special activities and demand from European customers in air freight had a counteracting positive effect on the development of the operating result in the Air + Ocean segment. The Solutions segment was also already affected by the Europe-wide public measures to combat the Corona pandemic at various locations in the first quarter of 2020. However, due to a special effect related to the sale of a location in Germany, the operating result was still above the previous year.The net income of the Logwin Group amounted to €6.1 million in the first three months of 2020 (2019: €8.7 million). The overall financial situation and liquidity of the Logwin Group remain stable.Risks and Forecast Adjustment ReportCompared to the information in the annual financial report 2019, the risk situation for the Logwin Group has changed significantly due to the global impacts of the Corona pandemic on economic activity. A negative impact on the assets, financial and earnings situation of the Logwin Group is considered likely. As part of its consistent risk management, Logwin identifies emerging risks early and consistently pursues their minimization, referring to the financial report 2019.Compared to the information in the annual financial report 2019, the Logwin Group is adjusting its forecast for the 2020 result due to the global impacts of the Corona pandemic.Due to the now globally relevant risks, particularly also due to the duration and only gradual reduction of public measures to contain the Corona pandemic, the Logwin Group now expects a significantly declining operating result (EBITA) compared to the previous year.The quarterly report as of March 31, 2020, of the Logwin Group is available online at: www.logwin-logistics.comPhoto: Logwin