EXEL BOOSTS 2002 RESULTS WITH $1 BILLION IN NEW BUSINESS
Exel plc nearly doubled its net result in 2002 to '116.8 million ($186.9 million), largely due to '625 million ($1 billion) in new business, the company said.
The 2002 net result compares with net profit of '67.4 million in 2001.
Operating profit rose 3.8 percent to '218.1 million ($349.0 million), while revenue rose 5.7 percent to '4.69 billion ($7.47 billion).
'Exel's performance in 2002 demonstrates the group can deliver solid growth in weak economic conditions and at the same time win new business to deliver future increases in profit,' said John Allan, chief executive officer of Exel.
The company renewed 75 percent of its contracts reviewed in 2002, in addition to the '625 million in new business. As a result, Exel added '350 million ($560 million) in net annualized revenues.
Total contract logistics operating profit decreased 5.9 percent to '97.6 million ($156.2 million), largely due to lower than anticipated performances in France and Spain and weakness in U.S. technology and automotive markets, the company said.
Contract logistics operating income for Europe, Middle East and Africa declined 6.5 percent to '60.1 million ($96.2 million). In the Americas, operating income was down to '34.8 million ($55.7 million), from '37.1 million in 2001. Asia Pacific operating income increased 17 percent to '2.7 million ($4.3 million).
Freight management operating profit rose 20.4 percent to '69.0 million ($110.4 million), on turnover of '2.23 billion ($3.56 billion), up 6.0 percent. Strong performance in Europe more than offset flat margins in the Americas, and the impact of second-half margin reductions in Asia Pacific, the company said.
Operating income for freight management operations in Europe, the Middle East and Africa jumped 52 percent to '18.3 million ($29.3 million), while operating income in the Americas declined 4.8 percent to '17.7 million ($28.3 million). For the Asia pacific, freight management operating income rose 23.6 percent to '33.0 million ($52.8 million).
Allan said Exel expects 2003 'to be another challenging year,' and results thus far have been in line with expectations. 'Provided there is no material worsening of world economic situations, we believe Exel is well positioned to make good progress in 2003,' he said.