Christian Salvesen trading Update – Paul Carvel resigns
DocumentContentsRNS Number:2496Y
Salvesen (Christian) PLC
2 February 2001
2 February 2001
Board change and trading update
Board change
Christian Salvesen PLC announces the resignation from the Board of Mr Paul
Carvell, with immediate effect. Mr Carvell joined the Group and was appointed
to the Board as an Executive Director in February 2000 and was responsible for
the Group’s European-wide industrial logistics operations. Edward Roderick,
Chief Executive of Christian Salvesen PLC, will assume immediate
responsibility for this area.
Trading update
As the Group reported in the interim results announcement on 28 November 2000,
and as the sector has experienced since, market conditions remain tough.
Fuel prices have remained high, easing only recently, in the key markets of
Spain and Germany, and the Group is experiencing increased resistance from
industrial customers to accepting the higher prices. Similarly, it is proving
difficult to recover from customers the cost of large price increases
introduced – at the Government’s prompting – by sub-contracted haulier
co-operatives in Spain. The under-recovery is equivalent to approximately 3%
of total costs.
The return to normalised trading levels in both Spain and Germany following
the Christmas break has been slower than predicted. A number of customers in
the automotive sector have shut down plants for longer periods than previously
and post Christmas volumes have been at lower levels reflecting a general
slowdown in demand.
The Industrial Division in the UK has continued to perform well, and in line
with the Board’s expectations. The pipeline of potential new business in this
market remains at a healthy level.
Trading in the Food and Consumer Division has remained at levels anticipated
at the time of November’s results announcement.
As a result of these factors, the Board expects that for the year to 31 March
2001, pre-tax profits before goodwill amortisation and exceptional items will
be slightly below the previous year’s result.
Notwithstanding the difficult trading conditions currently being encountered
in our European markets, the demand from major industrial and food and
consumer customers for their logistics partner to provide a pan-European
networked service continues to grow. The Board therefore remains firmly of
the view that its strategy of developing a pan-European shared-user network,
and of maintaining a rigorous programme of addressing or eliminating
under-performing areas of the business, will deliver value to shareholders.
To that end, the acquisition of Darfeuille Associes SA, a French industrial
logistics group, was completed last month. The UK Food and Consumer business
is currently disposing of under-performing operations at Dundee and
Peterborough, and the sale of the Group’s loss making German frozen food
logistics business is expected to be completed later this month.
The Group’s results for the year to 31 March 2001 will be announced in June
2001.
– Ends –
For further information, please contact:
Christian Salvesen PLC 01604 662600
Edward Roderick, Chief Executive
Peter Aspden, Finance Director
Frances Gibson-Smith, Headof Investor Relations
Hogarth Partnership Ltd 020 7357 9477
John Olsen
Nick Lockwood
