SNCF Geodis recorded a decline in revenues and profits in 2012 as the recession in France andEurope hit demand for its transport and logistics services.
Last year, the French rail group’s logistics subsidiary recorded revenues of €9.5 billion. Thiswas 0.9% higher on a reported basis but 1.6% lower on an underlying basis. The division, whichincorporates SNCF’s rail freight activities as well as the Geodis-branded transport and logisticsbusinesses, now generates 47% of its turnover outside France.
The division’s operating profit (EBITDA) declined by €93 million on an underlying basis to €136million, with cost-cutting measures tempering the impact of lower sales. However, the €93 millionfigure includes a €61 million fine by the European Commission against the rail freight businessthat the company is appealing against.
The Freight Forwarding division (Geodis Wilson), covering air and sea transportation, was theonly one segment to report gains with sales up 7.6% which partially offset the decline in otherdivisions.
The Parcel Delivery and Express division (Geodis Calberson) saw revenues drop by 3%. In 2011,the division, with 12,000 staff, 5,000 vehicles and 36 million shipments, generated about 26% ofGeodis revenues.
Declining revenues were also reported by the other Geodis divisions, including Road Transport(-4.8%) and Logistics (-3.1%).
Last year’s highlights included the partial acquisition of the insolvent French parcels firmSernam by Geodis Calberson with a joint offer from Geodis (€500,000) and its minority holding BMV(€250,000). As part of the acquisition, a total of 831 of Sernam’s remaining 1,441 employees weretaken on by Geodis. In addition, Geodis acquired MF Cargo, a Hungarian road transport company aswell as Avirail and Avirail Italia.
In terms of new customers in 2012, Geodis won a contract with the games manufacturer Mattel forlogistics and distribution services in southern Europe. Moreover, Bayer Pharma has outsourced itsentire pharmaceutical logistics in France to Geodis under a new 7½-year contract signed at the endof last year that makes the SNCF subsidiary into one of the three leading healthcare logisticsproviders in the country. Finally, the company signed a $50 million contract with Cimolai tosupport the steel manufacturer’s work on widening the Panama Canal.
The overall SNCF Group increased revenues by 3.6% to €33.8 billion last year, improved operatingprofits by 46% to €1.2 billion and more than tripled its net profit to €383 million.
Looking ahead to 2013, SNCF said in its annual report that all SNCF Geodis segments shouldimprove profitability this year “in a context of limited activity growth”.
