DANZAS’ ANNUAL REVENUES RISE BY 40% TO $4.1 BILLION
Danzas, the logistics and forwarding arm of the expansion-minded Deutsche Post group, reported an increase in net sales of 40 percent for 1999, to 4.2 billion euro ($4.1 billion), from 3 billion euro in the previous year.
The large increase in revenues is partly the result of the acquisition of several companies during the year. The figures for 1999 include the revenues and contribution of Nedlloyd’s European transport and distribution business since July and those of the acquired Swedish forwarding group ASG since September. The figures for Air Express International, the latest big acquisition by Danzas, will be consolidated starting in the 2000 business year.
“The Danzas group again expanded market share in the fiercely contested logistics sector,” the company said.
Danzas reported earnings before interest and taxes of 50 million euro ($49 million) for 1999, an increase of 72 percent from the 29-million euro result in the previous year.
Peter Wagner, chief executive officer of Danzas, cited the tightly knit, global network of branches, the international IT network, as well as the broad range of services along the supply chain under the roof of Deutsche Post World Net as important contributors to this improved performance.
Danzas said that its acquisition in March 1999 by Deutsche Post “has proven an excellent fit of two complementary partners.” Under Deutsche Post, Danzas was able to pursue its strategic goals even faster in the 1999 business year, it said.
Danzas’ intercontinental forwarding business unit increased its net sales from 1.3 billion euro in 1998 to 1.5 billion euro ($1.5 billion) last year, an increase of 21 percent.
The “solutions business unit” of the group, responsible for supply chain management, boosted its net sales from 455 million euro in 1998 to 823 million euro ($798 million) last year, up by 81 percent. The logistics arm of Danzas absorbed a number of acquisitions and integrations in 1999, including Nedlloyd, DDF Logistica, Vindo Logistik, ASG Logistics and Deutsche Post Kontrakt Logistik.
Danzas’ European land transport business unit suffered from over-capacity and pressure on rates in Europe’s overland transport market, but its net sales rose from 1.3 billion euro to 1.9 billion euro ($1.8 billion) last year, an increase of 46 percent. The business was also enlarged through acquisitions.
Danzas said that its ultimate goal is to become “the world’s leading provider of all types of logistics services.”
The Danzas group now consists of three business units: Solutions, Intercontinental and Eurocargo. “This simplification of the group’s structure will make it easier for Danzas customers to access the worldwide range of logistics services from a single source — one-stop shopping –, and at the same time opens the way to continued improvement of productivity,” Danzas said.