SEMBCORP LOGISTICS REPORTS SOARING ANNUAL PROFITS

SEMBCORP LOGISTICS REPORTS SOARING ANNUAL PROFITS

   SembCorp Logistics, a major Asian logistics and marine services company based in Singapore, reported profits after tax and extraordinary items of S$47 million ($27 million) for 2000, an increase of 662 percent over the 1999 result of S$6 million.

   Operating profit before extraordinary items, interest and depreciation was S$97 million ($56 million), up by 14 percent on the 1999 operating profit of S$85 million.

   Revenues increased 2 percent, to S$448 million ($259 million), from S$441 million. SembCorp Logistics said the low increase in revenues was due to the divestment of non-core businesses. On a comparable basis, group revenues would have increased by 22 percent over 1999, it said.

   Revenues for the company’s supply chain management division increased 8 percent last year, to S$315 million ($182 million). The division’s profit before interest and tax improved 45 percent, to S$41 million ($23 million).

   The company said its two major supply chain services business units outside Singapore — in China and India — continued to expand their network and customers’ base. Revenue in China increased 68 percent last year, while revenue in India was up 167 percent.

   In December, SembCorp Logistics acquired a 20-percent stake in Kuehne & Nagel International. Its share of the big forwarder’s profit before tax for 2000 was S$3 million ($2 million).

   SembCorp Logistics said its supply chain business focuses principally on the management of warehousing space of more than 4.9 million square feet and on the management of inventory, representing more than $1 billion or 600,000 line items.