DGAP-News: Logwin: Measures aimed at tackling the crisis are taking effect - Positive result in third quarter

Logwin AG / Interim Report 

04.11.2009 

Dissemination of a Corporate News, transmitted by 
DGAP - a company of EquityStory AG. 
The issuer / publisher is solely responsible for the content of this announcement. 
 

Logwin: Measures aimed at tackling the crisis are taking effect - 
Positive result in third quarter 

- Sales: 1,173.9 million euros; EBIT before restructuring costs and 
impairments: 0.3 million euros 
- Cost reductions are showing increasingly positive effects 
- Cash and cash equivalents: 57.7 million euros 

Grevenmacher (Luxembourg) - In the first six months of 2009 Logwin AG 
achieved sales of 1,173.9 million euros (2008: 1,572.7 million euros). The 
decrease in sales in the traditionally stronger third quarter was less than 
in the previous three months and reflects initial cautious optimism that 
the economy is stabilizing. Earnings before interest and taxes (EBIT) and 
before restructuring costs and impairments amounted to 0.3 million euros 
(2008: 25.0 million euros). Improved earnings in the third quarter 
resulting from cost reductions were able to compensate the operating losses 
incurred in the first half of the year. 

At 5.5 million euros, the operating cash flow of the Logwin Group showed a 
positive development at the end of the reporting period. The pleasing 
improvement in working capital was due to the strict management of 
receivables. Net cash flow, at 0.7 million euros, was positive at the end 
of the reporting period. Cash and cash equivalents at the end of the 
reporting period increased to 57.7 million euros as a result of the 
measures taken to safeguard earnings and liquidity, which continue to be at 
the focus of the Group's management. 

'We are responding with strict cost management to the decline in demand and 
the high cost pressures in the logistics industry. We are reducing costs 
for materials and personnel, adjusting our capacities and streamlining our 
structures', explains Berndt-Michael Winter, Chairman of the Executive 
Committee (CEO) of Logwin AG. 'We will emerge from the crisis in a more 
efficient state than when we entered it at the end of 2008.' 

In the first three quarters, the slump in demand for logistics services and 
the dramatic fall in freight rates resulted in a significant decline in 
sales in all three business segments compared with the previous year. 
Comprehensive measures aimed at reducing costs are being implemented 
throughout the group in view of the continuing difficult economic 
situation. The integration of individual Road + Rail activities into the 
business segment Solutions that was announced in the second quarter was 
carried out in the third quarter. The closing down of forwarding activities 
at the Karlsfeld location (Germany) is on schedule. 

In the fist nine months of 2009, the business segment Solutions achieved 
sales of 459.3 million euros (2008: 550.6 million euros). Earnings before 
restructuring costs and impairments, negatively affected by drastic 
declines in volumes and severe price pressures, amounted to 4.7 million 
euros (2008: 11.6 million euros). The decline in earnings could be partly 
offset by a reduction in costs. The operating margin improved in the course 
of the year to 1.0 %, but is still below the previous year's margin (2008: 
2.1 %). 

In the reporting period, sales at the business segment Air + Ocean amounted 
to 306.6 million euros (2008: 415.7 million euros). This fall is mainly due 
to the weak, market-related developments in volumes and to significantly 
lower air and sea freight rates. In the first nine months EBIT amounted to 
11.2 million euros (2008: 16.7 million euros). At 3.6 %, the operating 
margin maintained a pleasing level (2008: 4.0 %). This development in a 
difficult market environment confirms the successful positioning of the 
business segment and the measures aimed at improving efficiency. 

As a result of the market-related decrease in transport volumes and lower 
freight rates, the business segment Road + Rail generated significantly 
lower sales of 444.7 million euros compared to the previous year (2008: 
651.5 million euros). Despite extensive measures aimed at lowering costs 
and reducing capacities in the transport business, the business segment 
reported a significantly negative EBIT before restructuring costs and 
impairments of -11.4 million euros (2008: 1.7 million euros). However, the 
development of earnings in the third quarter showed the initial positive 
effects of the measures taken. It will continue to counteract the decline 
in earnings by further streamlining the land transportation activities. 

Developments in the traditionally stronger third quarter of 2009 lead the 
Logwin Group to assume that the group will experience stable development at 
a low level until the end of the year. 

The Nine-Months Financial Report 2009 is available at 
www.logwin-logistics.com 



About Logwin AG 

As an external partner, Logwin AG, based in Grevenmacher (Luxembourg), 
develops a comprehensive range of logistics and service solutions for trade 
and industry. In 2008, the group generated sales of 2.0 billion euros and 
currently employs approximately 7,800 staff in 45 countries. Logwin 
operates in main markets worldwide and has over 400 locations across all 
continents. With its three business segments Solutions (customer-oriented 
contract logistics), Air + Ocean (global air and ocean freight forwarding 
activities) and Road + Rail (land and special transportation activities in 
Central, Western and Eastern Europe) Logwin AG is one of the market 
leaders. 

Logwin AG is listed on the Prime Standard of the Deutsche Börse. The 
majority shareholder is DELTON AG, Bad Homburg (Germany). 


Contact: 
Mara Hancker, Head of Public Relations 
P: 00352/719690-1353, F: 00352/719690-1359 
pr-info@logwin-logistics.com 

Peer Brauer, Head of Investor Relations 
P: 00352/719690-1112, F: 00352/719690-1359 
ir-info@logwin-logistics.com 





04.11.2009  Financial News transmitted by DGAP 
 

Language:     English 
Company:      Logwin AG 
an de Längten 5 
L-6776 Grevenmacher 
Luxemburg 
Phone:        +352 719 690 0 
Fax:          +352 719 690 1359 
E-mail:       info@logwin-logistics.com 
Internet:     www.logwin-logistics.com 
ISIN:         LU0106198319 
WKN:          931705 
Indices:      Prime All Share (PXAP), Classic All Share (CLXP), DAXsector 
All Transportation & Logistics (4N87), DAXsector 
Transportation & Logistics (CXPL), DAXsubsector All Logistics 
(4N99), DAXsubsector Logistics (I1LB) 
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr 
in Berlin, München, Düsseldorf, Stuttgart, Hamburg 

End of News                                     DGAP News-Service