ifwla - Warehousing and Logistics International

20 Financial Reportsfinancing charges of £9.0 million (2010: £8.9 million)the profit before tax for the year is a loss of £75.5 million(2010: £11.7 million profit).The Group’s transformation from a pan-Europeansupply chain solution provider to a UK & Irelandfocused business is now well underway. The Group’sstrategy is to achieve a clear leadership position in theUK & Ireland market based on expertise in solutiondesign and operational capabilities in warehousing,multi-modal transport and specialist services across abroad range of market sectors such as retail, defence,consumer goods, construction, milk and energy.The major variances in the UK & Ireland half year’sperformance have been within Wincanton’s Foodservicebusiness and as a result of the disposal of Recycling inAugust 2010. Whilst Wincanton made good progress inwinning and renewing business, these developmentswere offset by reduced volumes in the Container logisticssector and by two retail customers going intoadministration.In July 2011, Wincanton completed the sale of theNetherlands business and in August 2011 it completedthe sales of the German Road operations and of thebusinesses in Central & Eastern Europe. It announcedthe proposed sale of its remaining Mainland Europeanoperations to Rhenus, a transaction scheduled to completelater this year. Wincanton is also undertaking aphased withdrawal from its Foodservice business, whichhas been loss making for some time. On completion ofthese two remaining steps, it will have exited from all ofthe sub-scale or underperforming areas of its business.The greatest challenge in terms of achieving profitablegrowth lies in areas of the contract logistics businesssuch as the traditional retail and consumer goodscontracts and the more mature milk and fuel tankeroperations. At the extreme, the basic open book warehousecontract is a commodity service and marginshave declined year on year. While these services continueto be an important part of Wincanton’s businessmix, it will focus on driving margin improvements byadding value through additional services, streamliningcustomers’ supply chains or providing systems capabilitiesthat will help them manage challenges presentedby multi-channel retailing.Elsewhere.... some of the industry’s larger 3PLs presenteda mixed set of results, with revenues andprofits, up or down, depending on where you look.APL Logistics reported Q3 revenue of US$333.0 million,up 10.0% from a year ago. Q3 Core EBIT wasUS$16.0 million, down 11.0% from a year ago. Yearto-datein 2011, APL Logistics has reported revenue ofUS$1.0 billion, up 15.0% from 2010. The Companyachieved its highest average weekly revenue ever duringQ3, but at the same time, it is actively managingcosts as a reflection of uncertain economic conditions.At Panalpina, Logistics net forwarding revenues fell4.5% in Q3, 2011 to CHF210.0 million and in the 9Mperiod increased by 2.6% to reach CHF667.0 million.Gross profits fell 8.0% in Q3, to CHF81.0 million anddecreased by 3.3% in the 9M period, to CHF261.0 million.Year-to-date, Damco’s Supply chain managementvolumes were 3.0% lower than in the same period in2010 due to a relatively weak consumer demand inNorth America and Europe.Menlo Worldwide Logistics sustained its quarterlyearnings momentum. Stable customer volumes andgood cost controls enabled Menlo to deliver growth innet revenues and profits, as demand for high-valuecontract logistics and supply chain management servicescontinued to gain traction. For Q3, 2011, MenloWorldwide Logistics reported revenue of US$417.1 million,an increase of 12.7% from the prior year thirdquarter.The quarter benefited from increased revenuein both transportation management and warehousemanagement services. Net revenue reached US$154.7million, a 9.9% increase from the previous year thirdquarter. Operating income of US$12.7 million wascompared to an operating loss of US$6.3 million in Q3of last year.About AnalytiqaAnalytiqa assists companies across the global supplychain to recognise growth and profit in challengingand competitive markets.Analytiqa achieves this through the provision ofmarket reports, custom research, advisory services,white papers, supply chain consulting and executivesearch services.From Latin America to Asia, across North Americaand Europe, the Middle East and Africa, Analytiqa’ssupply chain expertise encompasses the completeend-to-end supply chain, from freight managementto home delivery, through airlines and shippinglines, freight forwarders, road and rail transport,3PL and courier and express services.Analytiqa adds value to in-house and outsourcedsupply chains by providing high quality and commerciallyrelevant market research, customer andcompetitor insight, and business development tools.Testimonials from the industry’s leading playersprovide evidence of our ability to add value to aclient’s business and these can be seen onwww.analytiqa.comAnalytiqa’s range of innovative services makeboth financial and operational contributions to theprofitability of supply chains across the globe, alldelivered through Analytiqa Interactive (www.analytiqa-interactive.com)to provide you with a greaterROI on your investmentIssue No. 3www.ifwla.com