Danzas: High turnover, not enough profit

As in the previous two years, Danzas expanded its market share in the fiercely contested logistics sector and has grown to become the leading global provider of logistics solutions,» explained CEO Peter Wagner proudly at the dinner organized for the media in Basel. The group’s net turnover climbed from EUR 4.45 billion to 8.29 billion during the year 2000. Acquisitions accounted for 60% of the explosive growth rate of 86%, and organic growth for 26%. Even though the operating result (EBITA) improved from EUR -27 to +113 million, the group’s CEO was not satisfied. «A 1.4% margin on the EBITA is too little.» This figure is expected to climb to over 2% this year and is planned to reach between 3 and 4% in 2004. All the three business sectors – Solutions, Intercontinental (INCO) and Eurocargo (European overland transportation) – grew faster last year than the industry average, namely by 26%, 27% and 11% respectively as compared to the industry average of 9%, 8% and 3% for these sectors. At least in the Solutions and Eurocargo units, net turnover is expected to grow in proportion to overall market growth during the current year, without any further larger acquisition. Wagner was not prepared to make any future predictions regarding the sea and air freight business sectors. The weaker US economy has already had an impact on the clearly lower business figures for the last few months. The US accounts for roughly one quarter of turnover from INCO and approximately 12% of group turnover.