Synergy is the key as Danzas looks ahead
Danzas, the world’s biggest air freight forwarder, will improve its performance as the market returns to growth in the second half and through cross-selling with DHL.
Despite last year ‘s slump in air freight volumes and the slower than expected integration of AEI, Danzas increased its sales by 10.4% to t9.15bn.
And margin improvements achieved through the rapid growth of its Solutions logistics business helped pre-tax profits 40.7% higher at t159m.
Return on sales was up to 1.7% from 1.4% in 2000.
Blaming US deflation, the effects of 11 September and integration costs, head of finance Jim Fredholm said: “We moved forward, but not as much as we would have liked.” The target for this year is 2.1% and there were signals in the first quarter that the industry was “through the bottom”.
Renato Chiavi, who took over as CEO of Danzas in December, forecast a US-led market recovery in the second half. “When air freight starts to pick up, we know the upturn is here, ” he said. But he warned: “We don’t know what Europe will bring us, especially Germany.” Bernd Flickinger, head of Solutions, said sales had increased from t1.21bn to t1.47bn last year, with only fashion of the main logistics sectors going into reverse. That was a “welcome dip” as Danzas shed unprofitable business, he said. FMCG, automotive and electronics/telecoms business increased sharply.
Danzas will this year become involved in a spare parts operation which DHL, its sister company in the Deutsche Post World Net (DPWN) group, is currently managing for Fiat Auto. Financed by Deutsche Postbank, a third arm of DPWN, this operation illustrates the synergies now being achieved across the group.
Peter Kruse, express/logistics director for DPWN, said crossselling by Danzas and DHL would continue, but the cooperation would be limited to combining resources and sharing infrastructure and IT. “It would not make sense to throw everything into one melting pot, ” he said.
nDPWN announced a 7.3% increase in operating profits to t2.6bn last year on turnover 2.1% higher at t33.4bn.
Chairman Klaus Zumwinkel said he expected the full consolidation of DHL and further organic growth to take turnover above t41bn this year.
Posted: 15/04/2002
IFW
