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Analytiqa: Logistics Bulletin: Friday 02nd March

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Analytiqa: Logistics Bulletin: Friday 02nd March

Written by Mark O'Bornick
Monday, 05 March 2007
This week's Logistics Bulletin reports on new research from Analytiqa that forecasts 15.9% growth in logistics markets across Western Europe, with Spanish markets set to lead the way. The research also identifies a marked increase in outsourcing of logistics services, though patterns vary considerably by both country and industry sector. M&A activity this week targets Europe, the US and China. In Europe, Norbert Dentressangle has acquired the logistics operations of Beiersdorf in France, whilst TDG has made an acquisition in the packed and speciality chemicals sector in Spain. In the US, the CEO of EGL has brought in new partners for a second attempt to take the Company private. A strong set of 2006 results from Geodis saw consolidated revenue rise to €3,784.8 million, a 5.3% increase. 2006 saw a return to growth in Italy and improvement in the UK, although Spanish operations were hit by problems in the groupage business. German revenues increased by 26.5%, in Ireland (15.4%) and Eastern Europe (21.6%). Geodis is now poised to embark on a more ambitious project and aims to increase revenue by 40.0% over the next three years. Elsewhere, retail rationalisation hit profits at TDG, as the Company's 2006 UK contract logistics revenues fell by 3.6%. In the US, fright forwarder EGL reported a 3.3% drop in 2006 net income, as gross revenues grew by 4.0% to reach US$3,217.6 million. In property news this week, Kuehne + Nagel has announced ambitious growth plans for Russia, whilst GEFCO is developing a second UK international hub in Northern England. Contract news sees wins for NYK in the UK and increased business for UPS SCS in the US. European Logistics markets to grow by 16% Analytiqa’s Western European Logistics research provides an analysis of past market performance along with forecast growth trends across seven major European markets in five key sectors. Use this extensive data and analysis to understand the factors that drive manufacturers and retailers to outsource supply chain activity to specialist logistics service providers. As a supplier or 3PL, this research will enable the identification and targeting of future, potentially high yielding, growth markets and opportunities. Delivered via Analytiqa Interactive, use presentation-ready tables and graphics - just select and drag the tables and graphics directly into your own documents, nine language translation facilities and keyword searches to select only the report sections that are relevant to your projects. Market size, market segmentation, market shares and outsourcing rates: 2000 – 2011. Click here for a brochure and contents: http://www.analytiqa.com/pdf/free/AnalytiqaWesternEuropeanLogistics.pdf Geodis target 40.0% revenue increase over three years 27 February 2007 - In 2006, consolidated revenue at Geodis rose to €3,784.8 million, from €3,595.7 million in 2005, a 5.3% increase (4.6% like-for-like). A robust performance in France combined with sustained growth in Germany, Eastern Europe and Asia was responsible for the third consecutive year of around 5.0% revenue growth. Operating profit rose 24.6%, to €106.4 million, representing 2.8% of revenue. Operating profit in France includes the reclassification in operating expense of the €2.0 million standard minimum corporate income tax, as well as the reimbursement of €7.9 million in VAT paid on motorway tolls in prior years. Logistics revenues in France contracted by 1.7% compared to 2005, mainly as a result of lower volumes under major high-tech contracts and termination of the contract with Philips. The contributions of Audas and Chenue, acquired in 2005, and the development of new contracts only partly made up for these negative developments. Air and Sea Freight Forwarding revenues in France climbed 5.5% over the year. Traffic from Asia continued to grow rapidly, while volumes processed for EXXON stabilised at the end of the year. Revenue for the Europe region (excluding France) continued to grow in 2006, rising €32.9 million (3.2%) to €1,045.9 million from €1,013.0 million the previous year. Like-for-like growth came to 1.8%. The region came close to break-even with an operating loss of just €0.5 million, reflecting the ongoing recovery in Italy where operating losses were limited to €3.6 million, and an improved performance in the UK. Results in Spain were adversely affected by the problems encountered by the groupage network and by the €4.8 million in impairment charges recognised on intangible assets. 2006 saw a return to growth in Italy, with revenues gaining €5.9 million (1.4%) over the year to €415.9 million, from €410.0 million in 2005. Activities related to international trade flows and major projects offset the continued decline in European groupage revenue. With no noteworthy changes in the contract portfolio, revenue in Benelux contracted by €8.2 million (4.4%) over the year to €178.0 million from €186.2 million in 2005. The decline was largely due to a few major clients that shipped smaller volumes compared to the previous year. In Germany, revenue was €106.8 million in 2006, compared to €84.4 million in 2005. The year-on-year increase of €22.4 million (26.5%) was attributable to the contribution of newly-consolidated Boos Groupage and the development of new contracts. In Spain, revenue climbed to €127.2 million in 2006 from €117.1 million in 2005, representing an increase of €10.1 million (8.6%) that was attributable to the end-2005 acquisition of Ibercondor. In the UK, revenue declined by €11.3 million (8.5%) to €122.4 million, from €133.7 million in 2005. The 2005 restructuring led to a fall in revenue from trucking activities in 2006. In addition, after a period of rapid growth in European PC distribution services on behalf of IBM/Lenovo, volumes declined over the second half of the year. In Ireland, revenue increased 15.4% to €47.9 million from €41.5 million in 2006. In Eastern Europe revenue continued to grow, rising by €10.5 million (21.6%) to €59.1 million from €48.6 million in 2005. The second half of the year saw the termination of a loss-making contract in Russia and the halting of services for Philips in Hungary. In Greece, revenue rose 8.2% to €10.5 million from €9.7 million in 2005. Italy ended the year with an operating loss of €3.6 million – after restructuring costs of €4.2 million – versus €20.8 million in 2005. Operating results in the other countries of the region were similar to 2005. In Spain, the operating loss deepened to €13.6 million from €3.6 million in 2005, partly as a result of the €4.8 million impairment loss recorded on intangible assets recognised on the business combination with Ibercondor in 2005. In addition, the national network experienced problems in 2006 in its new branch in Barcelona, which is the largest in the network in Spain. In the Netherlands, operating profit was boosted by the €8.4 million capital gain realised on the sale of the Rotterdam site, raising Benelux operating profit to €11.6 million in 2006 versus €4.5 million in 2005. Operations in the UK generated an operating profit of €1.0 million in 2006 versus a €6.1 million loss in 2005. Ireland contributed operating profit of €2.8 million in 2006 compared to €0.6 million in 2005. In Germany, operating profit amounted to €0.6 million in 2006 versus €4.9 million in 2005. In Eastern Europe, operating profit stood at €0.2 million in 2006 versus €1.9 million in 2005. Lastly, in Greece, operating profit amounted to €0.4 million versus €1.2 million in 2005. The International region (Asia/Africa/Mexico) performed well in the second half of the year. Operating profit for the six-month period came to €3.8 million, reflecting increased revenues and the termination of a loss-making contract which eroded first-half profitability. Geodis continued to pay down its debt in 2006. At the year-end, net debt stood at €157.3 million, down €89.0 million from 31 December 2005. In France, strict application of the law concerning payment terms within the business drove a sharp fall in working capital requirement of around €51.0 million. Geodis is now poised to embark on a more ambitious project and is to set more challenging goals for profitable growth in the period to 2009. The aim is to increase revenue by 40.0% over the next three years, and to lift operating margin to around 4.0%. To fulfil these ambitions, a new corporate structure will be built around Core Business Divisions that will be up and running as of 30 March, to pursue three strategic priorities. These are: 1) to confirm the Group’s leadership position in the French distribution market and grow the distribution business in Europe; 2) to continue its development of a targeted, high-quality contract logistics offer; and 3) to successfully integrate Wilson (TNT Freight Management - TFM) and continue to grow freight forwarding and industrial project operations. Elsewhere this week: CEO brings in new partners for second attempt to take EGL private http://www.analytiqa.com/newsitem.aspx?articleid=2304 TDG acquires Spanish logistics business http://www.analytiqa.com/newsitem.aspx?articleid=2294 Norbert Dentressangle acquire Beiersdorf logistics operations in France http://www.analytiqa.com/newsitem.aspx?articleid=2310 FedEx completes acquisition in China http://www.analytiqa.com/newsitem.aspx?articleid=2309 TATEX installed as trans-o-flex partner in France http://www.analytiqa.com/newsitem.aspx?articleid=2298 Retail rationalisation hits profits at TDG http://www.analytiqa.com/newsitem.aspx?articleid=2293 EGL reports 3.3% drop in 2006 net income http://www.analytiqa.com/newsitem.aspx?articleid=2303 ABX Air increases net earnings despite loss of revenue http://www.analytiqa.com/newsitem.aspx?articleid=2300 TNT concludes first full year of 'Focus on Networks' strategy http://www.analytiqa.com/newsitem.aspx?articleid=2308 NYK Logistics appointed by Grupo Antolin http://www.analytiqa.com/newsitem.aspx?articleid=2296 Raytheon awarded Phalanx performance based logistics contract http://www.analytiqa.com/newsitem.aspx?articleid=2301 Lufthansa Cargo expands specialist service offer http://www.analytiqa.com/newsitem.aspx?articleid=2299 Kuehne + Nagel launch Europe-wide groupage network http://www.analytiqa.com/newsitem.aspx?articleid=2311 GEFCO UK Develops second UK international hub http://www.analytiqa.com/newsitem.aspx?articleid=2307 Kuehne + Nagel drive logistics expansion in Russia http://www.analytiqa.com/newsitem.aspx?articleid=2306 W. P. Carey acquires French logistics portfolio http://www.analytiqa.com/newsitem.aspx?articleid=2297 Gazeley completes spec build at G.Park Sheffield http://www.analytiqa.com/newsitem.aspx?articleid=2295 Kuehne + Nagel signs network integration contract with AT&T http://www.analytiqa.com/newsitem.aspx?articleid=2302 Receive Analytiqa's daily logistics news by RSS. Sign Up for Free Daily Bulletin Updates: http://www.analytiqa.com/rssfeed.aspx Click www.analytiqa.com/news.aspx for additional developments added daily. Logistics and Supply Chain Research: Who’s Who in Global Logistics and Freight Forwarding 2006 Since this report was last published, the Global Logistics and Freight Forwarding market has undergone significant change and widespread consolidation. This has dramatically impacted on the dynamics of the market as well as the competitive capabilities of many players. This report provides you the insight into the market that you need in order to evaluate either your service providers or your competitors. For more information, click: http://www.analytiqa.com/reports.aspx?ReportId=237 For more information about Analytiqa’s products please click: http://www.analytiqa.com/Research.aspx Analytiqa Gate House, Fretherne Road, Welwyn Garden City, UK, AL8 6NS Tel: +44 (0)1707 37 22 11 Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Bookmark with: Delicious Digg reddit Facebook StumbleUpon What are these?

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