French logistics group Geodis, one of the largest road freight operators in Europe, has given an early indication as to the state of the European freight industry in 2007 and prospects for 2008.

Headline revenue for the full year 2007 was up 26.4%, including its acquisition of Wilson from TNT, and 5.4% on a like-for-like basis. Management commented that the group’s performance was lifted by a very strong third quarter and sustained growth in the fourth quarter. All business divisions contributed to the increase.

Geodis’ groupage revenue (37% of the total) rose 5.3% compared with the previous year. Its French home market revenue experienced a 7.2% rise at €1,426m. Volumes continued to grow in the second half, while price rises, mainly from passing on higher diesel costs, also contributed to the increase.

The group’s Euromatic division and groupage businesses in other European countries contributed €360.1m to consolidated revenue, down 5.2% compared with 2006. The decline was mainly due to the discontinuation of loss-making operations in Germany and a December strike by Italian road hauliers.

The freight forwarding division, including Wilson from February 2007, reported a doubling of revenue, helped by like-for-like growth of 10.3%. Asia saw revenue grow 32% like-for-like to €441m, whilst in southern Europe the division generated revenue of €663.9m, an increase of 8.7% like-for-like. Management stated that it considered the operational integration of Wilson now complete.

Contract logistics revenue for 2007 rose 4.4% on a reported basis and 4.1% like-for-like. The rapid expansion of automotive logistics business and the start-up of new contracts in the second half helped to lift revenue for the year to €832.7m.

Full truckload revenue, corresponding mainly to Geodis BM’s road haulage operations, totalled €584.7m, unchanged from the previous year.

The results are a good sign for other European logistics operators in Geodis’ peer group such as DSV, Schenker and DHL. They show that there is as yet very little sign of a consumer-driven slowdown. Geodis’ comments about a solid fourth quarter offer encouragement that fears of a European recession on the back of US economic weakness are possibly being over-played.

Source: Transport Intelligence

The Glossary of Terms in Logistics & Shipping is the most comprehensive paper-based dictionary and therefore the standard for defining terms used in the area of Logistics and Shipping. Use this powerful tool to expand your professional vocabulary and ensure that everyone on your team is speaking the same language. www.theKnowledgeTransfer.com

paperback student version $ 19,99 hardcover executive version $ 29,99

| Permanent Link | Print This eLog |

(Visited over 19890 times)