Weaker profits for Frans Maas
Frans Maas, the Netherlands based logistics and freight forwarding company, has released its 2002 results. They show a small increase in turnover, taking net sales beyond the €1bn mark for the first time. Revenues rose to €1,010.3m from €998m in 2001. However operating profits (EBIT) fell to €19.8m from €24.1m.
The last two years have proved especially difficult for the company as it has been exposed to the weakening markets in mainland Europe. Its aggressive acquisition strategy had led to a major expansion in Germany, one of the worst affected of the major European economies. With the deterioration of the German transport market, the company has been forced into taking radical steps to re-structure its operation. Another reason given for the fall in profits was the downturn in the high tech sector which put pressure on its warehousing activities.
One of the Frans Maas’ main priorities in 2003 will be to reverse a long standing decline in margins. Whilst the company’s revenues have grown by about 60% from 1997, its operating margins have fallen by over a half. Higher margin logistics activities account for only about a quarter of its turnover, the majority consisting of freight forwarding (air, sea and road). Its European groupage operations are particularly vulnerable to the economic downturn and whilst such a high level of economic uncertainty exists the company has refused to give any forecasts on forthcoming revenues and profits.
