Exel profit declined in 2000
Exel PLC, Britain’s largest logistics company formed by last year’s $4.65 billion merger between NFC and Ocean PLC, today reported lower pretax profit for 2000 and warned that the high-tech meltdown is affecting some of its customers.
But the company said a steady flow of new contracts and larger-than-expected cost savings from the merger will help it through the economic downturn in the United States, an increasingly important market.
Full-year pretax profits before exceptional charges and amortization of goodwill were 190.6 million pounds ($278.3 million) compared with 201.9 million pounds ($294.8 million) in 1999. Revenue increased slightly to $6.5 billion from $6.3 billion.
But it is difficult to make meaningful comparisons with 1999 because of the integration of Ocean and NFC, significant stock buy-backs and disposals.
Chief executive John Allan said logistics now accounts for 98 percent of group revenue. The company’s strategy will be to increase revenue through joint ventures and with acquisitions in Europe, the United States or Asia.
Recent deals involved the establishment of a Swiss logistics business with Kuoni; a move into Eastern Europe with the acquisition of Werthmann & Koster, a German automotive logistics provider with customers in the region; and the purchase of Total Logistics, an Australian health-care business.
Separately, one of Exel’s main domestic rivals, Hays PLC today said pretax profit in its fiscal first half rose by two percent to $176.7 million from $173.7 million in the 1999 period. Revenue increased 24 percent to $1.9 billion.
