French group Geodis has reported sales of 2.3bn euros for the first half of 2007, up 22.1 per cent. The company bought TNT Freight Management from TPG group boosting its presence in the international forwarding market. Integration costs meant than net profit was down from 21.6m euros to 14.2m euros.
In Europe (excluding France), revenue decreased by 0.7 per cent, reflecting declines in Benelux and the United Kingdom, owing to lower distribution volumes for certain high tech customers, which were only partly offset by advances in Germany, Eastern Europe and Italy. Operating results in Benelux and the UK were consequently adversely affected by these lower business volumes. Revenue in France expanded by a 5.9 per cent, led by steady growth in groupage and freight forwarding volumes.
TNT Freight Management has reverted to its old name, Wilson. It five-month contribution to operating profit amounted to €5.6 million, in line with the forecast for the period. Coinciding with the Wilson takeover, Geodis reorganised itself into four core business divisions.
Geodis says the second half will see the ongoing implementation of the adjustment measures that are needed to ensure that the group’s targets are met. These mainly consist of turning around loss-making businesses – particularly domestic groupage operations in Europe – and adapting certain structures. The programme of property sales to be conducted in parallel with these measures should ensure that they have no impact on profit for the year.
Wilson boost for Geodis
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