Leading German time-critical courier company In Time Express Logistik is eyeing furtheracquisitions to grow its business which has been hard hit by the crisis in the European automotive
industry.The courier company, which already bought rival RS Logistik last year, is open for moretakeovers both in Germany and in Europe, managing director Gerd Röttger told CEP-Research in aninterview at last week’s Transport Logistic trade fair in Munich.
In Time, 70% owned by Frankfurt-based financial investor Equity Capital Management and 30% bythe management, had revenues of €57 million in 2007. Following the acquisition of RS Logistik lastyear, it ended 2008 with turnover of €83 million. About 80% of revenues come from time-criticaldeliveries for the automotive industry.
“Of course, we are affected by the economic downturn. We have a volume decline of about 20%at present,” Röttger said. “For 2009 we expect a revenue fall of up to 20%.” However, volumes hadslightly improved in April after falling since last November, and the company has just ended theshort-time working introduced earlier this year, he pointed out.
Nevertheless, it will take time before the automotive industry recovers to the extent thatthe time-critical express business recovers fully, Röttger said. “We expect it will take 3-4 yearsbefore we reach 2008 levels again.”
In-Time, the largest time-critical courier firm in Germany with 18 depots and own locationsin Romania, Hungary and Sweden, is focusing on international expansion to follow its automotivecustomers, new products and external growth to develop its business. New locations could includePrague and other Eastern European sites.
Outlining the medium-term strategy, Röttger said: “We want to make the company moreinternational. We would look at possible acquisitions. But we want to grow more in Germany as well.There are small companies who recognise that they may not have a future,” he commented.
In addition, to diversify its product portfolio somewhat, In Time has recently introduced aircargo trucking services transporting shipments to and from airports for customers and has gainedthe Authorised Economic Operator (AEO) security status.
