Parcels Group GeoPost, a subsidiary of La Poste, recorded a turnover of Î2.53bn in 2005, an increase of 6.2%. Pre-tax profit was up to Î142.9m.
Growth was boosted by an increase in volumes handled in most European domestic markets, particularly in Germany, the UK and eastern Europe, and an increase in international business.
UPS Inc. and FedEx Corp. told investors here (the Bear Stearns Global Transportation Conference) they see the rest of the year being at least comparable with and probably superior to the boom that was 2005. However, they also said they grappled with continuing operating challenges. Both rivals are dealing with labor issues. “The economy is steady now, but will be more challenged going forward,” UPS Chief Financial Officer Scott Davis said, referring to difficulties that could be caused by rising energy prices and interest rates. “But we think the small-package sector will grow faster than the economy,” he added. James Hudson, a FedEx vice president, said he thinks business could be particularly good because “we’re expecting industrial production to grow by 3.7% this year, up from 3.2% last year.” He also said he sees 2007 as a “stable” year.
Read MoreSNAS/DHL has opened its newly built state of the art express center in Abha. The refurbishment and relocation of the Abha center reaffirms SNAS/DHL’s long-term commitment to the Kingdom and heralds further expansion of capacity and investment amid a boom in the Saudi express and logistics market. The strategy was announced at a ceremony held at the opening of the new center on the Abha Khamis Mushait highway. SNAS/DHL will execute a series of major initiatives in 2006, including investing in their infrastructure in rural areas across the Kingdom. SNAS/DHL will also increase the number of branches from the current 42 nationwide. Through a comprehensive upgrading of network, infrastructure and human resources capabilities, the Abha center will significantly strengthen SNAS/DHL’s market leadership in Saudi Arabia, and highlight its strong confidence in the Saudi market.
Read MoreRoyal Mail yesterday described a report that it is in talks with the US companies Fedex Corporation and UPS over an alliance with its pan-European parcels business General Logistics Systems as “speculation” and declined further comment. The Sunday Times reported Royal Mail was in talks with the two US companies over what it described as a ground-breaking European alliance. It said chairman Allan Leighton was still undecided which of the two companies to choose but was keen to use GLS to break into the postal markets in France and Germany.
Read MoreGermany’s Federal Network Agency has started to investigate if Deutsche Post World Net AG misused its dominant market position by offering lower prices in parcel deliveries to cut down competition, according to a prerelease of Die Welt’s Monday edition. It cited a spokeswoman for the Federal Network Agency as saying that the agency has received a letter from a competitor with a request to examine the prices of Deutsche Post. ‘And so we have started initial investigations,’ she added. The newspaper, citing sources, said the complaint was lodged by Hermes Logistik Gruppe.
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