The Hamburg-based HOYER Group maintained its growth trajectory during the 2007 financial year. Total turnover rose by approximately EUR 100 million to EUR 935 million - an increase of 12 percent. The company took full advantage of the growth in the world economy in 2007 and achieved a level of growth that exceeded that of the bulk logistics market as a whole.
"While we managed to increase our business significantly, we should not allow this success to make us complacent", said Thomas Hoyer, chairman of the Advisory Board when presenting the company's annual report for 2007. The chemical industry, which remains the HOYER Group's main customer, expects the economy to slow in the second half of 2008. In view of the good results of recent years and the cyclical nature of this industry, this should not come as a surprise. "We must be prepared", Hoyer said. Turnover is expected to grow again in 2008.
The HOYER Group recorded a two-digit increase in its operating result for 2007 (before one-time charges) - for the fifth time in succession. Earnings before taxes rose by EUR 6.5 million to EUR 17.3 million, although the EBIT margin, at three percent, was at the lower end of expectations.
"The Group's fine performance in 2007 will enable it to increase its equity base again this year", said Ortwin Nast, the CEO of the HOYER Group. The sustained strong investment activity may lead to a temporary weakening of the equity ratio. "Our investment programme covers equipment, mainly tank containers, but also the acquisition of companies that have the potential to complement the current HOYER service portfolio," he said.
Thomas Hoyer was pleased to point out that the number of employees also continued to rise in 2007. At the end of 2007, the Group employed a total of 5,408 people - 607 more than in the previous year.
An overview of the HOYER business units
Improved earnings quality: HOYER CHEMILOG HOYER CHEMILOG is the logistics partner for the chemical industry. The business unit specialises in the transportation of all liquid chemical products, particularly polyoles, polymers, isocyanates, fats, fatty acids and liquid resins. While the business unit CHEMILOG only managed a marginal increase in turnover compared with the previous year, the quality of its earnings improved significantly. In 2007, the market as a whole had to deal with capacity bottlenecks as well as the increasing cost of diesel. This pressure resulted in higher prices throughout the market. On the other hand, the business unit completed a successful restructuring, which led to a substantial reduction in costs. Carefully directed expansion caused the margin mix to improve. For example, we entered the Balkans growth market when we began to do business in Serbia -- and we plan to carry out similar initiatives in the future.
Closer to the customer: HOYER FOODLOG
HOYER FOODLOG offers customers from industry and commerce individual logistics concepts for high quality, liquid food products. In the 2007 financial year, the business unit pursued the strategy of strengthening its presence in its core markets. It successfully increased its turnover by nine percent while at the same time improving profitability by a significant margin. This expansion was achieved both through new customer acquisition and increased business from existing customers. Growth drivers were the greatly increased demand for the transport of glucose and beer, together with the current trend within the food industry to relocate production facilities to Eastern Europe, where HOYER established its own infrastructure years ago. HOYER FOODLOG tendered successfully for a logistics contract in the UK, enabling it to forge an even closer relationship with the customer. This allowed the business unit to enter the domestic market in the UK in 2007.
Worthwhile investments: HOYER GASLOG
HOYER GASLOG offers worldwide logistics services for industrial gases, which are used in fields such as engineering, medicine and food processing. In close cooperation with customers from the international gas industry, the business unit develops concepts that extend far beyond its own transport services. The business unit GASLOG is very well positioned as a supplier of transport services to the gas industry, and particularly to gas manufacturers.
The healthy business climate within the industry helped HOYER GASLOG to achieve a significant increase in turnover. Two corporate acquisitions aimed at improving the customer position in Germany and Italy confirm the dynamic nature of this business unit.
Another of the business unit's activities is the leasing of gas containers. Thanks to the healthy state of the world economy in 2007, GASLOG succeeded in increasing the capacity utilisation of its container fleet. The business unit also extended its routes in the Middle and Far East, investing in some sophisticated equipment in the process. For example, the unit purchased several new containers for transporting helium at a cost half a million euros each. HOYER GASLOG is now a world leader in this market.
HOYER PETROLOG
The business unit PETROLOG looks after the Group's global petrochemical activities. HOYER PETROLOG is now a leading transport and logistics service provider to the petroleum industry in eleven European countries. The business unit has enjoyed a period of strong growth in recent years, during which time it has increased its business by a third. However, this rapid growth caused a certain amount of upheaval, and as a result, new contracts in several countries did not deliver the income that had been expected. Consequently, the business unit took action to limit its growth in order to consolidate its existing business.
HOYER PETROLOG substantially expanded its petroleum distribution business in all parts of Germany. It also built up a significant market position in Sweden, despite a fall in the overall sales of petrol in this market and the continuation of the downward trend in the number of service stations. The only way of achieving this success was by capturing additional market share, which was achieved thanks to the guaranteed high level of customer service made possible by our "Value for Money" initiative. HOYER encourages its customers to ship more of their products via the business unit by providing a service that helps counteract the effect of the growing competitive pressures within the industry.
Our bitumen business was also affected by increased competition. However, we are pleased to report that we gained a new contract for the countrywide distribution of bitumen in the Czech Republic.
Expanding its market presence: HOYER TECHLOG
The HOYER Group's core business is bulk logistics. It also covers a number of specialist areas such as full-service logistics for IBCs, and tank cleaning and servicing stations for road tankers and tank containers. These specialist operations are managed by HOYER TECHLOG. For the third year running, the business unit improved its earnings, and in 2007 successfully completed its turnaround.
In the IBC Logistics business sector, HOYER expanded its market presence by first analysing the requirements of its individual customers and then by providing a product that would best meet these requirements. As a result, the business unit succeeded in expanding in the Alpine regions, in the UK and in the Benelux countries.
Record earnings: HOYER GLOBAL TRANSPORT
With approximately 12,000 tank containers, HOYER Global Transport accounts for the lion's share of the more than 18,000 tank containers within the HOYER Group. This makes HOYER the world's second largest operator of tank containers.
The overseas tank container transport service handled by the business unit had another strong year in 2007. The number of shipments reached new all-time highs and turnover grew by 25 percent. Asia again was responsible for the biggest growth rate, followed by Europe.
In order to be able to meet the growing demand for tank containers, the business unit is working on further improving its infrastructure in the growth regions of the world, particularly in China, India, Brasil, Russia and in the southeast Asian tiger economies. In addition to focusing on tank containers, the business unit also acquired Powertex, a company operating in the lucrative flexibag transport market.
"While we managed to increase our business significantly, we should not allow this success to make us complacent", said Thomas Hoyer, chairman of the Advisory Board when presenting the company's annual report for 2007. The chemical industry, which remains the HOYER Group's main customer, expects the economy to slow in the second half of 2008. In view of the good results of recent years and the cyclical nature of this industry, this should not come as a surprise. "We must be prepared", Hoyer said. Turnover is expected to grow again in 2008.
The HOYER Group recorded a two-digit increase in its operating result for 2007 (before one-time charges) - for the fifth time in succession. Earnings before taxes rose by EUR 6.5 million to EUR 17.3 million, although the EBIT margin, at three percent, was at the lower end of expectations.
"The Group's fine performance in 2007 will enable it to increase its equity base again this year", said Ortwin Nast, the CEO of the HOYER Group. The sustained strong investment activity may lead to a temporary weakening of the equity ratio. "Our investment programme covers equipment, mainly tank containers, but also the acquisition of companies that have the potential to complement the current HOYER service portfolio," he said.
Thomas Hoyer was pleased to point out that the number of employees also continued to rise in 2007. At the end of 2007, the Group employed a total of 5,408 people - 607 more than in the previous year.
An overview of the HOYER business units
Improved earnings quality: HOYER CHEMILOG HOYER CHEMILOG is the logistics partner for the chemical industry. The business unit specialises in the transportation of all liquid chemical products, particularly polyoles, polymers, isocyanates, fats, fatty acids and liquid resins. While the business unit CHEMILOG only managed a marginal increase in turnover compared with the previous year, the quality of its earnings improved significantly. In 2007, the market as a whole had to deal with capacity bottlenecks as well as the increasing cost of diesel. This pressure resulted in higher prices throughout the market. On the other hand, the business unit completed a successful restructuring, which led to a substantial reduction in costs. Carefully directed expansion caused the margin mix to improve. For example, we entered the Balkans growth market when we began to do business in Serbia -- and we plan to carry out similar initiatives in the future.
Closer to the customer: HOYER FOODLOG
HOYER FOODLOG offers customers from industry and commerce individual logistics concepts for high quality, liquid food products. In the 2007 financial year, the business unit pursued the strategy of strengthening its presence in its core markets. It successfully increased its turnover by nine percent while at the same time improving profitability by a significant margin. This expansion was achieved both through new customer acquisition and increased business from existing customers. Growth drivers were the greatly increased demand for the transport of glucose and beer, together with the current trend within the food industry to relocate production facilities to Eastern Europe, where HOYER established its own infrastructure years ago. HOYER FOODLOG tendered successfully for a logistics contract in the UK, enabling it to forge an even closer relationship with the customer. This allowed the business unit to enter the domestic market in the UK in 2007.
Worthwhile investments: HOYER GASLOG
HOYER GASLOG offers worldwide logistics services for industrial gases, which are used in fields such as engineering, medicine and food processing. In close cooperation with customers from the international gas industry, the business unit develops concepts that extend far beyond its own transport services. The business unit GASLOG is very well positioned as a supplier of transport services to the gas industry, and particularly to gas manufacturers.
The healthy business climate within the industry helped HOYER GASLOG to achieve a significant increase in turnover. Two corporate acquisitions aimed at improving the customer position in Germany and Italy confirm the dynamic nature of this business unit.
Another of the business unit's activities is the leasing of gas containers. Thanks to the healthy state of the world economy in 2007, GASLOG succeeded in increasing the capacity utilisation of its container fleet. The business unit also extended its routes in the Middle and Far East, investing in some sophisticated equipment in the process. For example, the unit purchased several new containers for transporting helium at a cost half a million euros each. HOYER GASLOG is now a world leader in this market.
HOYER PETROLOG
The business unit PETROLOG looks after the Group's global petrochemical activities. HOYER PETROLOG is now a leading transport and logistics service provider to the petroleum industry in eleven European countries. The business unit has enjoyed a period of strong growth in recent years, during which time it has increased its business by a third. However, this rapid growth caused a certain amount of upheaval, and as a result, new contracts in several countries did not deliver the income that had been expected. Consequently, the business unit took action to limit its growth in order to consolidate its existing business.
HOYER PETROLOG substantially expanded its petroleum distribution business in all parts of Germany. It also built up a significant market position in Sweden, despite a fall in the overall sales of petrol in this market and the continuation of the downward trend in the number of service stations. The only way of achieving this success was by capturing additional market share, which was achieved thanks to the guaranteed high level of customer service made possible by our "Value for Money" initiative. HOYER encourages its customers to ship more of their products via the business unit by providing a service that helps counteract the effect of the growing competitive pressures within the industry.
Our bitumen business was also affected by increased competition. However, we are pleased to report that we gained a new contract for the countrywide distribution of bitumen in the Czech Republic.
Expanding its market presence: HOYER TECHLOG
The HOYER Group's core business is bulk logistics. It also covers a number of specialist areas such as full-service logistics for IBCs, and tank cleaning and servicing stations for road tankers and tank containers. These specialist operations are managed by HOYER TECHLOG. For the third year running, the business unit improved its earnings, and in 2007 successfully completed its turnaround.
In the IBC Logistics business sector, HOYER expanded its market presence by first analysing the requirements of its individual customers and then by providing a product that would best meet these requirements. As a result, the business unit succeeded in expanding in the Alpine regions, in the UK and in the Benelux countries.
Record earnings: HOYER GLOBAL TRANSPORT
With approximately 12,000 tank containers, HOYER Global Transport accounts for the lion's share of the more than 18,000 tank containers within the HOYER Group. This makes HOYER the world's second largest operator of tank containers.
The overseas tank container transport service handled by the business unit had another strong year in 2007. The number of shipments reached new all-time highs and turnover grew by 25 percent. Asia again was responsible for the biggest growth rate, followed by Europe.
In order to be able to meet the growing demand for tank containers, the business unit is working on further improving its infrastructure in the growth regions of the world, particularly in China, India, Brasil, Russia and in the southeast Asian tiger economies. In addition to focusing on tank containers, the business unit also acquired Powertex, a company operating in the lucrative flexibag transport market.
