FRANKFURT, Aug 10 (Reuters)– German container delivery team Hapag-Lloyd stated it went down to a first-half operating loss as frustrating products prices harm its organization.

The loss prior to rate of interest and also tax obligation (EBIT) pertained to 39.7 million euros ($ 44.26 million), below a year-earlier revenue of 267.7 million, the firm stated on Wednesday.

Chief Executive Rolf Habben Jansen stated the primary emphasis in the 2nd fifty percent would certainly be to more enhance the price base and also to obtain products back to an extra lasting degree.

Hapag-Lloyd authorized a binding contract with Arab peer UASC last month to develop the globe’s 5th biggest delivery firm by the end of 2016 in action to the worldwide sector situation.

“In this difficult competitive environment, it is very important to complete the transaction with UASC as quickly as possible and to start the integration of UASC immediately after the completion of all pre-closing conditions,” Habben Jansen stated.

The assimilation is anticipated to bring yearly web harmonies of $400 million, a few of which need to work from following year.

Average products prices dropped by almost 20 percent year-on-year to $1,042 per twenty foot comparable system (TEU) in the initial 6 months of 2016, Hapag-Lloyd stated.

Consequently, profits was down 19 percent at 3.8 billion euros in the initial fifty percent.

The firm reduced transportation costs by almost 16 percent, or 600 million euros, in the duration as it decreased the intake of shelter gas, where rates had actually dropped in addition to reduced oil rates however after that began increasing once more in the 2nd quarter.

It likewise pointed out harmonies from the assimilation of the container organization of Chilean peer CSAV, with which it combined in 2014, and also continuous price financial savings and also performance programs.

Hapag-Lloyd shares were down 0.4 percent at 16.34 euros by 0722 GMT when the SDAX index was off 0.2 percent.

($ 1 = 0.8969 euros) (Reporting by Vera Eckert; Editing by Maria Sheahan)

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