Logistics And Frieght Forwarding

Logistics companies' recovery stalls in 2011, says new report …

Logistics companies recovery stalls in 2011, says new report
27/Jun/2012

The revenues of the world’s leading listed transport and logistics companies flattened in 2011, according to Ti’s new report Global Transport and Logistics Financial Ratio Analysis 20121. In particular, companies’ operations in markets in Europe weakened, whereas those in North America and Asia Pacific reported more positive growth.

The report was launched today by Ti’s CEO, John Manners-Bell at the Davy Capital Markets Global Transportation & Logistics Conference in London.

The report provides a quarterly financial ratio analysis of the revenue, profit, gearing and return on asset figures achieved by the top logistics companies from 2007 to 2011 and, where available, results for the first quarter of 2012. The report also examines individually the varying fortunes of their freight forwarding, contract logistics, road freight and express divisions.

The report found that in 2011, revenue growth weakened after a promising first quarter. Without taking into account the effect of inflation, revenues are now at or above the levels seen just before the 2008 economic crisis, but operating profits margins, despite improvements in recent years, are still below 2007 levels.

An interesting finding of the report is the robust nature of freight forwarding operations. Profit margins within the sector have been largely sustained since 2007, with no significant peaks or troughs. Despite a slight revenue decline in 2011, operating margins held firm, seemingly resilient to economic uncertainty; a trait also noted during the 2008-09 economic crisis.

The contract logistics operations of the companies surveyed experienced consistently lower margins than freight forwarders. In 2011 there were mixed results, with growth continuing and margins improving for some but other players suffering a slowdown or decline in profit margins. Road freight companies have also experienced a tightening of margins since 2007.

Speaking at the Davy Capital Markets event, John Manners-Bell commented, “Average margins recorded by the leading players in the industry are very low – contract logistics companies’ margins briefly fell below 2% in the recession. It must however be questioned whether the average 4% margins which are now being reached are sufficient to sustain an industry which is so important to competitive supply chains.”

About Global Transport and Logistics Financial Ratio Analysis 2012

Global Transport & Logistics Financial Ratio Analysis 2012 examines the financial structure and performance of the world’s largest freight transport and logistics companies through a range of financial ratios. With the aim of providing data to help discern trends, Ti has extracted the quarterly figures for the major listed companies over the past 21 quarters. A total of 20 companies were reviewed and, where appropriate, ranked in order of performance.

Global Transport and Logistics Financial Ratio Analysis 20122, price 1,095, can be purchased from the Ti website by following the link provided. Alternatively, for more information, contact Mike Nordmann at: [email protected]3.

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Source: Transport Intelligence, June 27, 2012

(c) 2012 TI Briefing. All rights reserved. Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. TI Briefing is a service from Transport Intelligence Ltd. Transport Intelligence shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon.

References

  1. ^ Global Transport and Logistics Financial Ratio Analysis 2012 (www.transportintelligence.com)
  2. ^ Global Transport and Logistics Financial Ratio Analysis 2012 (www.transportintelligence.com)
  3. ^ [email protected] (www.transportintelligence.com)
  4. ^ Print this brief (www.transportintelligence.com)


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