Geodis profit up 6pc despite lower volume, Euro-crisis pricing pressure

GEODIS, the French railway SNCF's trucking and forwarding arm, has posted a year-on-year 5.9 per cent first half operating profit increase to EUR14.3 million (US$17.6 million), drawn on revenues of EUR3.5 billion, down 1.5 per cent.

"With the global economic crisis worsening against the backdrop of the sovereign debt crisis in Europe, reflected in shrinking volumes and increasing price pressure," Geodis reported a 1.1 per cent increase in revenue in the first half of 2012 to just over EUR3.5 billion. But at constant exchange rates, revenue was down 1.5 per cent on the first half of 2011.

"Strong momentum" in Geodis' activities in Eastern Europe and Asia limited the impact of the crisis on results as did the cost-cutting plans introduced in late- 2009. The first six months of 2012 was an eventful period for Geodis with a new logistics and distribution contract with Mattel in southern Europe, the opening of a new logistics platform near Moscow and the acquisition of MF Cargo in Hungary, demonstrating Geodis' "ability to bring its customers end-to-end supply chain management".

The company said the partial takeover in France of Sernam's activities will enable Geodis to further develop its groupage and express business. "With no global economic recovery in sight in 2012, Geodis will forge ahead with its strategy to win new business and pursue its transformation plans with the aim of enhancing organisational flexibility and improving productivity," it added.