Development in the year under review
- Market and competitive environment with positive stimuli.
- Positive development in land transport, ocean and air freight.
- Comprehensive initiatives for reducing costs, improving efficiency and digitalization.
DB Schenker | 2018 | 2017 | Change | 2016 | ||
absolute | % | |||||
Customer satisfaction (SI) | 71 | 74 | – | – | – | |
| Shipments in land transport (thousand) | 106,468 | 100,452 | + 6.016 | + 6,0 | 99,638 | |
| Air freight volume (export) (thousand t) | 1,304 | 1,300 | +4 | + 0,3 | 1,179 | |
| Ocean freight volume (export) (thousand TEU) | 2,203 | 2,169 | + 34 | + 1,6 | 2,006 | |
| Total revenues (€ million) | 17,050 | 16,430 | + 620 | + 3,8 | 15,128 | |
| External revenues (€ million) | 16,973 | 16,345 | + 628 | + 3,8 | 15,059 | |
| Gross profit margin (%) | 34.8 | 34.3 | – | – | 36.0 | |
| EBITDA adjusted (€ million) | 703 | 676 | + 27 | + 4,0 | 599 | |
| EBIT adjusted (€ million) | 503 | 477 | + 26 | + 5,5 | 410 | |
| EBIT margin (adjusted) (%) | 3.0 | 2.9 | – | – | 2.7 | |
| Gross capital expenditures (€ million) | 273 | 246 | + 27 | +11,0 | 209 | |
| Employees as of Dec 31 (FTE) | 75,817 | 71,888 | +3.929 | + 5,5 | 68,388 | |
| Employee satisfaction (SI) | 3.8 | – | – | – | 3.8 | |
| Employee satisfaction – follow-up workshop implementation rate (%) | – | 96.0 | – | – | – | |
| Share of women in Germany as of Dec 31 (%) | 29.5 | 30.8 | – | – | 31.9 | |
Specific greenhouse gas emissions (land transport) compared to 2006 (based on tkm) (%) | –25.8 | –20.2 | – | – | –16.3 | |
| Specific greenhouse gas emissions (air freight) compared to 2006 (based on tkm) (%) | –9.3 | –8.8 | – | – | –4.8 | |
| Specific greenhouse gas emissions (ocean freight) compared to 2006 (based on tkm) (%) | –61.2 | –60.7 | – | – | –60.3 | |
Customer satisfaction deteriorated in the year under review. There are various causes for this. They include capacity problems, as well as the introduction of a new IT system, which did not always proceed smoothly. Since 2017 we have been surveying about 15,000 customers annually in 28 countries on customer satisfaction.
Volume development was positive in air and ocean freight. Land transport also recorded positive development overall.
The economic development was encouraging. The operating profit figures showed positive development due to a rise in income. Gross profit (+ 5.3%) also grew, most markedly in air freight. The gross profit margin improved.
Revenues were generated 42% in land transport, 22% in air freight, 17% in ocean freight and 15% in contract logistics.
The adjusted EBIT was generated 25% in land transport, 35% in air freight, 16% in ocean freight and 18% in contract logistics.
- The main drivers of the positive revenue development were land transport and air freight. Contract logistics and ocean freight also developed positively when adjusted for exchange rate effects.
- Other operating income (– 11.3%) fell in the year under review.
On the expense side, quantity and freight rate developments made themselves felt:
- Cost of materials (+ 2.9%) rose, particularly within the air freight division as a result of freight rate developments.
- Personnel expenses (+ 4.7%) rose in the wake of a greater number of employees. The rise was even clearer when adjusted for exchange rate effects.
- Other operating expenses (+ 4.5%) rose in part due to the leasing of new space and higher levels of purchased IT services.
- Depreciation rose slightly at a low level.
Capital expenditure activities increased. The growth resulted primarily from the regions of Europe and America, with Europe continuing as the focus of capital expenditures.
At the end of the year under review, 28% of employees were employed in land transport, 9% in air freight, 7% in ocean freight and 32% in contract logistics. The number of employees increased. The principal drivers were growth in volume and the hiring of temporary workers.
Employee satisfaction is measured every two years, and remains at the same level as the 2016 employee survey.
The share of women in Germany fell slightly in the year under review.
The majority of DB Schenker’s greenhouse gas emissions are the Scope 3 emissions of our subcontractors. We have therefore developed a comprehensive monitoring system to monitor our carriers’ target development toward reducing greenhouse gas emissions overall. In the year under review, the reduction trend in ocean freight was maintained in view of additional market consolidations. In air freight, the reduction stabilized as a result of the carrier’s successive fleet replacement. In land transport, significant reductions were recorded based on increasing consolidation in the new hub structure, the use of extra-large swap bodies in Poland and as a result of a significant increase in the proportion of biofuels in Sweden. The market-based mixed cargo effects also contribute to this, having caused a reduction in emissions.
Land transport line of business
- Within the system and direct transport areas, greater focus on international transport services.
- Price effects had a positive impact.
- Europe-wide cost reduction initiatives further implemented.
Land transport line of business | 2018 | 2017 | Change | ||
absolute | % | ||||
Shipments in land transport (thousand) | 106,468 | 100.452 | + 6,016 | + 6.0 | |
Total revenues (€ million) | 7,092 | 6,608 | + 484 | + 7.3 | |
External revenues (€ million) | 7,023 | 6,531 | + 492 | + 7.5 | |
EBITDA adjusted (€ million) | 196 | 163 | + 33 | + 20.2 | |
EBIT adjusted (€ million) | 125 | 94 | + 31 | + 33.0 | |
| Employees as of Dec 31 (FTE) | 21,580 | 20,323 | + 1,257 | + 6.2 | |
Activities previously allocated to contract logistics and other areas will be reported under the land transport line of business from the year under review onwards. This resulted in restrictions compared to the previous year.
Volume development in land transport was positive overall. A decline in general cargo transports was more than compensated for by the increased volume of the parcel business and direct transport. Adjusted for the effects of the reassignments, volume in direct transports fell due to cross-country declines in Europe.
The economic development was positive. The operating profit figures showed considerably improved development. However, this was largely as a result of the reassignments.
- Revenue development was up as a result of price and volume effects and the reassignments. This was partly offset by negative exchange rate effects.
- Cost of materials (+ 7.4%) rose. This was particularly as a result of higher expenses, caused by reclassifications of land transport activities and service expansions. Exchange rate effects reduced expenses.
- Personnel expenses (+ 5.4%) increased due to the reclassification of land transport activities and service expansions. In addition, personnel numbers increased as a result of taking on temporary workers.
The number of employees increased as a result of business development and taking on temporary workers.
Air freight line of business
- Significant effects due to freight rate development despite the expansion of capacity on the market.
- Focus on broadening the customer base and improving the cargo mix.
- A range of measures for standardization and improving productivity are being implemented.
Air freight line of business | 2018 | 2017 | Change | ||
absolute | % | ||||
Air freight volume (export) (thousand t) | 1,304 | 1,300 | + 4 | + 0.3 | |
| Total revenues (€ million) | 3,804 | 3,530 | + 274 | + 7.8 | |
| External revenues (€ million) | 3,804 | 3,530 | + 274 | + 7.8 | |
EBITDA adjusted (€ million) | 186 | 166 | + 20 | + 12.0 | |
EBIT adjusted (€ million) | 178 | 158 | + 20 | + 12.7 | |
Employees as of Dec 31 (FTE) | 7,032 | 6,571 | + 461 | + 7.0 | |
There was slightly positive performance development. Drivers of this development include transatlantic transports and transports between Latin America and Europe. Performance was dampened by the market cooling off during the course of the year under review.
The economic development was positive; operating profit figures improved based on increased revenue and one-off effects. By contrast, exchange rate effects had a dampening influence.
- Revenue development was positive. The main drivers were freight rate and volume trends.
- Cost of materials also rose (+ 7.1 %) in line with the volume and freight rate trends.
- Personnel expenses (+ 5.4%) increased as a result of a higher number of employees.
The number of employees increased in part due to taking on temporary workers.
Ocean freight line of business
- Significant effects due to freight rate development.
- Focus on efforts to optimize capacity utilization, costs and purchase prices.
Ocean freight line of business | 2018 | 2017 | Change | ||
absolute | % | ||||
Ocean freight volume (export) (thousand TEU) | 2.203 | 2.169 | + 34 | + 1,6 | |
Total revenues (€ million) | 2.930 | 2.943 | – 13 | – 0,4 | |
External revenues (€ million) | 2.930 | 2.943 | – 13 | – 0,4 | |
EBITDA adjusted (€ million) | 84 | 82 | + 2 | + 2,4 | |
EBIT adjusted (€ million) | 81 | 80 | + 1 | + 1,3 | |
Employees as of Dec 31 (FTE) | 4.974 | 4.882 | + 92 | + 1,9 | |
Performance development for ocean freight was also slightly positive. Business related to the Middle East and Africa (MEA) as well as trade between the Asia-Pacific and Europe regions had a positive impact.
The economic development was dampened because the increase in revenues was entirely offset by increased expenses. Operating profit figures benefited from one-off effects. Exchange rate effects, on the other hand, had a noticeably negative impact.
- Revenues declined slightly due to exchange rate effects. Growth adjusted for exchange rate effects was recorded, driven by freight rates and volume development.
- Cost of materials declined as a result of exchange rate effects. A rise in line with the volume increase was recorded when adjusted for exchange rates.
- Personnel expenses (+ 2.3%) also recorded an increase in line with the expansion of services dampened by exchange rate effects.
The number of employees increased in part due to taking on temporary workers.
Contract logistics line of business
- Good business development in the existing and new customer base.
- Measures taken to increase productivity.
- Operational challenges in Australia, Germany and the Netherlands.
Contract logistics line of business | 2018 | 2017 | Change | ||
absolute | % | ||||
Warehouse space (million m²) | 8.3 | 8.0 | +0.3 | +3.8 | |
Total revenues (€ million) | 2,622 | 2,634 | – 12 | – 0.5 | |
External revenues (€ million) | 2,621 | 2,633 | – 12 | – 0.5 | |
EBITDA adjusted (€ million) | 141 | 167 | – 26 | – 15.6 | |
EBIT adjusted (€ million) | 92 | 120 | – 28 | – 23.3 | |
Employees as of Dec 31 (FTE) | 24,439 | 22,081 | + 2,358 | + 10.7 | |
Some activities previously allocated to contract logistics will be reported under the land transport line of business from the year under review onwards. This reduces revenues and expenses, resulting in restrictions in comparability.
The economic development in the contract logistics line of business was negative: operating profit figures recorded poorer development due to higher expenses combined with business expansions and as a result of the reclassification of land transport activities.
- Revenue declined slightly due to exchange rate effects. Business expansion resulted in an increase due to exchange rate effects. The reassignments had a dampening effect.
- Cost of materials (– 17.8%) fell as a result of the reassignments. Exchange rate effects also reduced expenses.
- Personnel expenses (+10.7%) increased, partly as a result of a higher number of employees. By contrast, exchange rate effects reduced expenses.
The increase in the number of employees was due to the business expansion as well as the taking on of temporary workers.