Analytiqa: Logistics Bulletin: Friday 27th July
Elsewhere retailers and manufacturers are making supply chain news, as Monsoon reports distribution centre problems in the UK, General Mills is to invest US$20.0 million in a new DC and Sobey's are to build a new Canadian DC. Also in Canada, Wal-Mart is spearheading collaboration among supply-chain companies to measure and reduce the environmental footprint of its product shipping process and logistics network. The Company assembled dozens of companies, including some of Canada's largest trucking, rail, storage and distribution suppliers, to begin the process of quantifying various sustainability measures.
Primary research with UK retailers by Analytiqa, released as a complimentary White Paper, identifies the environmental benefits and cost savings of a Port-based supply chain strategy and how this is already being adopted across the UK. Analytiqa's White Paper includes case studies of three organisations who have already implemented such a strategy - ASDA, BMB Group, Stiller Group. To request your complimentary copy of the White Paper, please send an email to email@example.com with your request.
Performance and Profitability in European Logistics
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Cross-selling drives strong H1 at Kuehne + Nagel
Kuehne + Nagel has reported strong growth and good results in the first half of 2007. Compared with the previous year’s period, turnover increased by 14.7%, to CHF9,968.3 million, EBITDA improved by 12.6%, to CHF467.9 million, and net earnings rose by 27.5% to CHF265.4 million.
The Company maintained the first quarter’s strong momentum and achieved convincing growth rates across all business units, driven by its global capabilities, efficient logistics infrastructure and an integrated business model, which provides the Group with significant cross-selling opportunities.
In highly competitive sea freight markets, Kuehne + Nagel’s IT-based products, as well as its professional capacity management, which particularly has been of advantage for customers exporting from the Far East, generated strong growth. Last year’s high volumes were surpassed by 15.0%, as turnover increased by 13.6%. Despite pressure on margins, Kuehne + Nagel improved the operational result by 15.0%. The EBITDA margin remained stable at 4.1%.
Results for air freight operations for the first six months of the year exceeded expectations. The business unit recorded a 16.1% increase in tonnage and the EBITDA margin reached 5.7%, both record levels. Turnover increased by 7.1% and the operational result improved by 25.5%. Key factors contributing to the performance were high cost efficiency, considerable new business wins resulting from cross-selling, and the integration of air freight in complex logistics solutions.
In Rail & Road Logistics, overland operations are progressing fast. With Kuehne + Nagel’s own groupage network in place, all national companies across Europe were able to increase volumes. This business unit also benefited from cross-selling and the integration of rail and road transportation in comprehensive projects. Turnover rose by 17.5%. Investments in the further expansion of the overland network and in the standardisation of IT systems led to a 25.9% reduction in the operational result. The EBITDA margin reached 1.6%.
Within Contract Logistics, investments made in recent years in the expansion of the business unit are now paying off. A record 21.6% growth in turnover for the first half of 2007 underlines the increasing demand for global logistics providers that operate at high levels of process and IT standardisation. The unit’s operational result improved by 15.1%, with the EBITDA margin at 5.1%.
Looking ahead, Kuehne + Nagel see the results for the first half year as a confirmation of both the efficiency of its customer-oriented business model, as well as the Group’s strong position in the global logistics market. The Company expects to continue its good performance in the second half of the year.
Elsewhere this week:
Linfox acquires Westgate Logistics
24 July – Third acquisition inside 12 months… (more)
Panalpina investigates business practices in certain countries
24 July - US authorities extend review scope to include Nigeria, Kazakhstan and Saudi Arabia… (more)
Grupo TMM expands in automotive sector
25 July - Add more than US$40.0 million of annual revenue… (more)
Toll unveils its new fully integrated air freight network
19 July – Strong revenue stream, which is anticipated to grow rapidly… (more)
Gadot Chemicals acquire European logistics company
23 July - Deal is expected to close in October… (more)
Norbert Dentressangle posts 10% growth in H1 revenue
26 July – Significant improvement in recurring operating income… (more)
Ryder forecasts modest SCS revenue growth
25 July - Supply Chain Solutions grew revenue grew 16.0% in Q2… (more)
Logistics boosts Q2 results at UPS
24 July – Encouraging trends in supply chain and freight... (more)
C.H. Robinson reports rise in Q2 profits
24 July – H1 net income climbs 24.5%, as gross profit increases 15.6%... (more)
Weak market hits Q2 at YRC Worldwide
26 July - Weak domestic shipping market, results in difficult operating environment. … (more)
BMW selects Penske Logistics for supply chain flexibility
23 July - Inbound supply chain services for production parts from Mexico and select US suppliers… (more)
DC problems hit performance at Monsoon
26 July - Insufficient time for training of staff with new systems… (more)
Sobey's to build new Canadian DC
25 July – Facility set to open in autumn 2008… (more)
General Mills invests in Iowa Distribution Centre
25 July – Facility expected to cost US$20.0 million… (more)
Dachser expands logistics operations in China
20 July - First warehouse in Shanghai; second WFOE office established… (more)
Ozburn-Hessey Logistics expands in Texas
24 July - New DC and international station are part of an overall OH Logistics expansion strategy… (more)
UPG launches fourth logistics centre
23 July - Expects to launch additional logistics centres in the near future… (more)
DCT Industrial Trust leases to OH Logistics in Chicago
12 July - Greater flexibility and scalability to address clients’ needs… (more)
AMB Property leases to EGL Eagle Logistics in Dallas
26 July – Air cargo distribution facility is being developed at DFW International Airport… (more)
AMB Property Corporation in Mexican sale-leaseback deal
24 July – DC houses German automotive parts supplier… (more)
ProLogis leases logistics centre Sony near Paris
24 July - Major new pan-European hub… (more)
ProLogis to develop logistics park for Locaposte
24 July - Facility used as a primary warehouse and parcel sorting office… (more)
Port of Tacoma plans terminal for Yusen Terminal Tacoma Inc.
26 July – Designed for an annual throughput capacity of up to 1.8 million TEUs… (more)
Wal-Mart Canada unveils environmental logistics strategy
25 July - Begin the process of quantifying various sustainability measures… (more)
CEVA Logistics appoints new MD for North America
20 July - Full P&L responsibility for CEVA’s logistics business in the US, Canada and Mexico … (more)
UPS Freight widens responsibilities for sales role
26 July - Cross-selling UPS Freight across all UPS global supply chain and small package customers… (more)
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Analytiqa is a market analysis and business intelligence company providing published reports, custom research and consulting for multi-national clients across a number of industry sectors from Logistics and Distribution through to FMCG and Professional Services.
List of Key Industry Participants:
ABX LOGISTICS; BAX Global; CH Robinson; DHL Global Forwarding; EGL; Exel; Expeditors; FedEx; GeoLogistics; Hellmann Worldwide Logistics; Kintetsu World Express; Kuehne & Nagel; Maersk Logistics; Nippon Express; Panalpina; Schenker; SDV; UPS SCS; UTi Worldwide Logistics; Yusen; Wincanton; APL Logistics; TDG; Rhenus Logistics; Penske Logistics; DPWN; DHL; DHL Exel Supply Chain; Federal Express; Schneider Logistics; Schneider National; Schenker Logistics; Stinnes; Gist; Eagle Global Logistics; Menlo Worldwide; Jones Lang LaSalle; ProLogis; DTZ; Gazeley; Groupe Norbert Dentressangle; National Logistics Company; TNT; TNT Logistics; Gefco; Maersk; Geodis; GEFCO; Bibby Distribution; Global Automotive Logistics; Autologic; NYK Logistics; Dachser; DSV; Fiege; Frans Maas; Hellmann Worldwide; MOL; KWE; Kintetsu; Ewals; UPS; Ryder.
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