Development in the first half of 2020
Efficient crisis management despite severe strain on the market environment caused by the Covid-19 pandemic.
Improvements in profits, particularly in air freight.
Comprehensive measures for improving efficiency and digitalization.
DB Schenker | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Shipments in land transport (thousand) | 51,659 | 53,860 | – 2,201 | – 4.1 |
| Air freight volume (export) (thousand t) | 495.3 | 578.9 | – 83.6 | – 14.4 | |
| Ocean freight volume (export) (thousand TEU) | 992.1 | 1,115 | – 122.9 | – 11.0 | |
| Total revenues (€ million) | 8,463 | 8,525 | – 62 | – 0.7 | |
| External revenues (€ million) | 8,429 | 8,491 | – 62 | – 0.7 | |
| Gross profit margin (%) | 35.2 | 35.9 | – | – | |
EBITDA adjusted (€ million) | 569 | 499 | + 70 | + 14.0 | |
EBIT adjusted (€ million) | 278 | 238 | + 40 | + 16.8 | |
EBIT margin (adjusted) (%) | 3.3 | 2.8 | – | – | |
| Gross capital expenditures (€ million) | 315 | 261 | + 54 | + 20.7 | |
| Employees as of Jun 30 (FTE) | 73,792 | 75,981 | – 2,189 | – 2.9 |
Volume development in land transport, ocean freight and air freight dropped significantly.
The economic development was differentiated: the operating profit figures developed positively as a result of an increase in revenues in air freight, among other things. Land transport and contract logistics, however, moved in the opposite direction. Gross profit declined slightly (–2.7%), despite a significant increase in air freight.
Of the revenues, 39% were generated in land transport, 26% in air freight, 17% in ocean freight and 15% in contract logistics. The adjusted EBIT was generated 20% in land transport, 57% in air freight, 11% in ocean freight and 12% in contract logistics.
- Revenue development declined slightly. The positive development in air freight was completely absorbed by declines in revenues in land transport, ocean freight and contract logistics.
- Other operating income (+ 6.9%/€ +7 million) increased significantly, partly as a result of higher income from Covid-19-related grants. Lower income from compensation for damages had a dampening effect.
The volume and freight rate developments were particularly noticeable on the expense side:
- Cost of materials (+ 0.3%/€ +14 million) remained virtually stable. Volume-driven growth in air freight was offset by declines in the remaining lines of businesses.
- Personnel expenses (–0.1%/€ –2 million) remained virtually unchanged.
- The significant decline in other operating expenses (– 15.7%/€ –137 million) was mainly due to lower rental and leasing expenses as well as lower travel and representation costs due to Covid-19.
- Depreciation (+11.5%/€ +30 million) increased due to higher capital expenditures (including leasing).
Capital expenditure activities increased significantly. The increase was mainly due to leasing activities. Adjusted for this effect, the capital expenditure volume remained virtually stable. The focus for capital expenditures continued to be the Europe region.
As of June 30, 2020, 29% of employees were employed in land transport, 9% in air freight, 7% in ocean freight and 32% in contract logistics. Due to the volume development, the number of employees was slightly below the level as of June 30, 2019.
Land transport line of business
Further development of the product portfolio and quality improvements with positive effects.
Increase in demand for the digital platform Connect4land.
| Land transport line of business | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Shipments in land transport (thousand) | 51,659 | 53,860 | – 2,201 | – 4.1 |
| Total revenues (€ million) | 3,277 | 3,638 | – 361 | – 9.9 | |
| External revenues (€ million) | 3,246 | 3,606 | – 360 | – 10.0 | |
EBITDA adjusted (€ million) | 146 | 175 | – 29 | – 16.6 | |
EBIT adjusted (€ million) | 56 | 95 | – 39 | – 41.1 | |
| Employees as of Jun 30 (FTE) | 21,573 | 21,868 | – 295 | – 1.3 |
There was a significant drop in volume in land transport, driven by transport fluctuations due to Covid-19.
The economic development was challenging: there was a marked negative trend in the operating profit figures.
- Revenues declined noticeably, mainly performance-related.
- Cost of materials also fell significantly as a result of the lower volumes.
- Personnel expenses increased slightly due to reclassification measures not affecting profits. Countermeasures implemented on account of the drop in volume had a dampening effect.
- Other operating expenses declined.
The number of employees fell as a result of the drop in volumes.
Air freight line of business
Growth in demand and low capacity availability resulted in a significant increase in freight rates.
A range of measures for standardization and improving productivity are in progress.
| Air freight line of business | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Air freight volume (export) (thousand t) | 495.3 | 578.9 | – 83.6 | – 14.4 |
| Total revenues (€ million) | 2,156 | 1,725 | + 431 | + 25.0 | |
| External revenues (€ million) | 2,156 | 1,725 | + 431 | + 25.0 | |
EBITDA adjusted (€ million) | 177 | 83 | + 94 | + 113 | |
EBIT adjusted (€ million) | 158 | 67 | + 91 | + 136 | |
| Employees as of Jun 30 (FTE) | 6,809 | 6,999 | – 190 | – 2.7 |
Performance development declined significantly due to the development of the global market.
Economic development, on the other hand, was noticeably positive: adjusted EBIT improved, due in particular to the disproportionately high increase in revenues.
- Revenue development was very positive due to price effects. The drop in volume had a dampening effect.
- Cost of materials increased significantly, mainly driven by the development in freight rates.
- Personnel expenses increased slightly due to reclassification measures not affecting profits. Countermeasures implemented on account of the decline in volume had a dampening effect.
- Other operating expenses decreased noticeably.
The number of employees fell as a result of the drop in volumes.
Ocean freight line of business
Increase in demand in order management and freight management solutions.
Major projects underway in Europe, South America and Asia-Pacific.
Impairment due to global mitigation measures brought about by the Covid-19 pandemic.
| Ocean freight line of business | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Ocean freight volume (export) (thousand TEU) | 992.1 | 1,115 | – 122.9 | – 11.0 |
| Total revenues (€ million) | 1,465 | 1,517 | – 52 | – 3.4 | |
| External revenues (€ million) | 1,465 | 1,517 | – 52 | – 3.4 | |
EBITDA adjusted (€ million) | 38 | 28 | + 10 | + 35.7 | |
EBIT adjusted (€ million) | 30 | 21 | + 9 | + 42.9 | |
| Employees as of Jun 30 (FTE) | 5,250 | 5,306 | – 56 | – 1.1 |
Performance development in ocean freight was noticeably negative. Performance increases in the Asia-Pacific region were unable to compensate for performance losses, which were caused in particular by the global mitigation measures of the Covid-19 pandemic.
The economic development was positive; the adjusted profit figures increased significantly:
- The slight decline in revenues was mainly due to the significant drop in volumes.
- Cost of materials also decreased as a result of the drop in volumes.
- Personnel expenses increased slightly due to reclassification measures not affecting profits. In addition, performance-related new hires in the second half of 2019 had an impact.
- Other operating expenses decreased noticeably.
The number of employees fell as a result of the drop in volumes.
Contract logistics line of business
Continuation of measures to increase productivity.
Decline in demand in the automotive and electronics industries.
Production and supply chain disruptions caused by the Covid-19 pandemic are hampering profit development.
| Contract logistics line of business | H1 | Change | |||
2020 | 2019 | absolute | % | ||
| Total revenues (€ million) | 1,303 | 1,356 | – 53 | – 3.9 |
| External revenues (€ million) | 1,302 | 1,355 | – 53 | – 3.9 | |
EBITDA adjusted (€ million) | 159 | 165 | – 6 | – 3.6 | |
EBIT adjusted (€ million) | 34 | 41 | – 7 | – 17.1 | |
| Employees as of Jun 30 (FTE) | 23,792 | 24,293 | – 501 | – 2.1 |
Economic development in contract logistics was dampened: adjusted EBIT decreased, particularly as a result of the drop in revenue development.
- Revenues developed slightly negatively as a result of the Covid-19 pandemic and the resulting production and supply chain disruptions, particularly in the automotive and electronics industries.
- Cost of materials was corresponding to the revenue development also declining.
- Personnel expenses decreased as a result of the drop in demand. Reclassification measures not affecting profits, on the other hand, caused expenses to increase.
- Other operating expenses decreased noticeably.
The number of employees fell as a result of the drop in demand.