ifwla - Warehousing and Logistics International

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16 Financial ReportsWith the latest financial reporting season upon us, Analytiqa’s Mark O’Bornick has taken a look atthe results of some of the world’s leading 3PLs to identify the latest trends and performance issues intheir contract logistics operationsMixed resultsChallenging market conditions inFrance led to margin pressure atKuehne + NagelIn the first nine months 2011, the Kuehne + NagelGroup delivered stable results despite divergent economicconditions and slowing market growth. Netearnings improved by 1.1% (currency adjusted: by15.6%) whilst EBITDA was 2.4% below (currency adjusted:11.5%) the figure of the previous year’s period.Turnover decreased by 3.8% (currency adjusted:increased by 10.1%) to CHF14,598.0 million.In Contract Logistics, net invoiced turnover declinedby 5.7% (currency adjusted: increased by 7.9%). Thefocal point of the business unit’s strategy has been theexpansion of services for multinational customers andthe consolidation at strategic logistics hubs. The integrationof contract logistics services into end-to-endsolutions has been an integral part of this strategicapproach. The challenging market conditions in Franceled to margin pressure, restructuring measures and anegative impact on results. Compared with the previousyear’s period, EBITDA in contract logistics was reducedby 11.5%; currency adjusted it remained stable. TheEBITDA margin decreased from 4.1 to 3.7%.Continued upward trends in logisticsat Norbert DentressangleQ3 at Norbert Dentressangle saw the Transport andLogistics businesses demonstrating satisfactoryorganic growth, with the Freight Forwarding businesson track to generate euro 100.0 million in annual revenue.The Company’s operating margin continues toimprove, with a strong like-for-like performance. In thefirst nine months of 2011, Norbert Dentressangle’sconsolidated revenue totalled €2,640.0 million, up24.9% on a published basis and 6.1% on a like-for-likebasis.Logistics revenue grew 25.8% on a published basis,to reach euro1,155.0 million, thanks to the integrationof TDG, which continued to increase its contribution toNorbert Dentressangle’s revenue stream following itsconsolidation into the Group as of 1 April 2011. On alike-for-like basis, logistics revenue at NorbertDentressangle increased by 4.1% in the first ninemonths of 2011, with a continued uptrend reportednotably in the UK, Norbert Dentressangle's leadinglogistics market. Q3 Logistics revenues grew 33.2% onthe same period of 2010, to reach euro424.0 million,representing 3.8% organic growth.Higher volumes and new businessboost operating revenue at RyderIn the US, Ryder System, Inc. has reported Q3 earningsfrom continuing operations of US$56.9 million,up 44.0% from the year-earlier period. Total revenuefor Q3, 2011 was US$1.57 billion, up 19.0%, reflectingthe benefit of acquisitions and organic growth.In the Supply Chain Solutions (SCS) business segment,Q3, 2011 total revenue was US$406.1 million,up 26.0% from the comparable period in 2010.Operating revenue (revenue excluding subcontractedtransportation) was US$326.8 million, up 26.0% comparedwith the same quarter a year ago. SCS total revenueand operating revenue comparisons benefitedfrom the acquisition of Total Logistic Control (TLC) inDecember of 2010. Operating revenue also benefitedfrom higher volumes and new business.The SCS business segment’s pre-tax earnings in thethird quarter of 2011 were US$22.4 million, up 47.0%from the same quarter of 2010. The improvement wasdriven by the TLC acquisition, higher volumes and newbusiness, partially offset by increased compensationrelatedexpenses.DSV sees excess warehouse capacitycontributing to fierce pricecompetitionFor the nine month period to 30 September 2011,DSV reported a 4.2% increase in revenue, reachingDKK32,787.0 million. Operating profit before specialitems (EBITA) increased 12.1%, corresponding to anEBITA margin of 5.6% (2010: 5.2%).In the Solutions division (contract logistics), operatingprofit before special items increased 5.1% in 9M, 2011through organic growth. Increased demand for warehousesolutions continued, but excess capacity stillcaused fierce price competition. Revenue in the divisiongrew by 2.1% over the same period of 2010 to reachIssue No. 3www.ifwla.com
Financial Reports 17DKK3,738.0 million (DKK3,434.0 million excludingintercompany revenue), as the EBITA margin reached5.5% in 9M, 2011, against 5.3% in 9M, 2010.Q3 saw good and stable results in the Solutions division,with particularly strong performances fromBenelux, Italy and Sweden. The division is rolling out anew IT platform which will increase productivity andefficiency and it also has a strong pipeline of customers,especially in the pharmaceuticals sector in theBenelux and France, and the electronics sector in theBenelux region.Asia-Pacific, Life Sciences &Healthcare and Automotive drivegrowth at DHL Supply ChainDeutsche Post DHL boosted revenues and significantlyimproved its profitability in Q3, 2011.Compared with the previous year, Group revenuesincreased by 2.5% to euro13.1 billion between July andSeptember. All of the Group's divisions contributed tothe Company's strong performance:At euro3.3 billion, revenues produced by the SUPPLYCHAIN division during Q3, 2011 remained at lastyear's level. However, this figure reflects the division'sactual operating performance only to a limited extent.Adjusted for exchange-rate and consolidation effects,such as the divestment of a subsidiary in the US thatwas not part of the division's core business, revenuesgenerated by the SUPPLY CHAINABOVE:division actually rose by 6.2% duringQ3.Group’s transfor-WincantonGrowth was fuelled in particular mation from aby significant growth in the Asia- pan-EuropeanPacific region as well as the Life supply chainSciences & Healthcare and solution providerAutomotive sectors. At euro280.0to a UK &million, the volume of new contractsconcluded with new and business is nowIreland focusedexisting customers remained very well underway.high. The margin gains achievedin these new contracts also underscoredthe division's ongoing successful performance. Afurther demonstration of this success was the steep risein operating earnings. EBIT rose from euro83.0 millionin Q3, 2010 to euro99.0 million in 2011, reflecting anincrease of nearly 20.0%.Contract Logistics boosts Q3 results atCEVACEVA Logistics has reported Q3, 2011 revenue ofeuro1.76 billion and EBITDA of euro86.0 million,up year-on-year by 1.2% and 5.8% respectively, at constantexchange rates. A good performance in ContractLogistics was partly offset by lower rates and volumes inFreight Management. Q3 saw continued good progressin Contract Logistics (CL), which grew revenue 2.5%www.ifwla.comIssue No.3
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Page 30 and 31: 30 Cover StoryWarehouse managements
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Page 36: 36 North AmericaABOVE:A shipin dock
Page 40 and 41: 40 AustraliaAustralia:a multi speed
Page 42 and 43: 42 Supply chain savingsBarloworld S
Page 44 and 45: 44 ConGri AdvertorialThe Italian Jo
Page 46 and 47: 46 Mark Millar Hong KongHong Kong
Page 48 and 49: 48 Joloda AdvertorialHeinz use Jolo
Page 50 and 51: 50 Twintec AdvertorialTwintec Advis
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ifwla - Warehousing and Logistics International

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