Geodis back in black with US$48.24 million operating profit

PARIS area logistics provider Geodis Group has announced an operating profit of EUR35.1 million (US$48.24 million) for 2010, an increase of EUR75.4 million drawn on revenues EUR6.56 billion a jump of 31.1 per cent year on year.


The result, which erases EUR40.3 million 2009 loss, was attributed to business growth and cost-cutting.


A statement from the company said "changes in scope" in 2009 and 2010 generated EUR812.6 million in new revenue plus exchange-rate differences between 2009 and 2010 contributed EUR166.2 million to 2010 revenue.


The company's freight forwarding division contributed 36 per cent of the revenue, with groupage and express adding 25 per cent, contract logistics, 15 per cent; supply chain optimisation, 13 per cent, and 11 per cent for trucking.


It said the freight forwarding division posted growth of 50.4 per cent compared to the previous year, which it attributed to higher freight prices and a recovery in volumes of air freight (+40 per cent) and sea freight (+22 per cent), especially between Asia and Europe.


For the first time, more than 50 per cent of the group's revenue was generated outside the domestic French market, it said.


The company added that last year it invested more than EUR120 million to support sales growth, expand and improve facilities and upgrade IT systems, especially in the groupage & express and freight forwarding divisions.
(Source:http://www.schednet.com)