Exel confirms good third quarter trading
28 Octubre 2003 - 1:00AM
PR Newswire (US)
Exel confirms good third quarter trading EXEL CONFIRMS GOOD THIRD
QUARTER TRADING (London, UK, 28 October, 2003) Exel plc, the global
leader in supply chain solutions, today confirmed that trading
through the third quarter had been good, in line with internal
forecasts. The Group also confirmed that it is on track to meet
full year market expectations. Commenting ahead of shareholder
meetings in the US and Japan, Chief Executive, John Allan said
"Progress in 2003 has confirmed the strength of our customer
focused strategy which has been rewarded with good new business
wins and a strong rate of contract renewals. Cash generation has
also been good and we remain confident that the Group will meet
market expectations for solid trading progress in 2003." During the
first three quarters of the year, Exel has secured new contract
wins totalling over �560m of annualised revenues (over �500m in the
same period last year). During the third quarter Exel successfully
took over operation of six of Marks & Spencer's 10 general
merchandise warehouses across the UK, as part of the five-year
contract won in the first half. In addition the Group secured major
contract gains with UK retailer House of Fraser, consumer products
company Burton's Foods, US retailer The Home Depot and Legend, the
leading manufacturer of PC products in China as well as further new
operations with Goodyear in the US where Exel is the Lead Logistics
Provider. "Our pipeline of new opportunities remains very healthy,"
added John Allan. "We have also continued to invest in our
business, in particular strengthening our healthcare activities
with the acquisition of Transbeynak in Turkey and Unidock's in
Brazil. Exel's recent acquisition of Power's retail and consumer
operations in the UK has made good progress including successfully
commissioning a major new automated facility for a leading consumer
products manufacturer." Performance at Exel's contract logistics
operations remained strong, with all major regions making good
progress over the previous year. In particular the strong first
half result generated by Exel's US operations continued into the
second half and, as expected, the Group further improved
performance in the UK and Ireland and Asia Pacific. European
operations continued to make steady progress. Freight management
activities remain mixed. Good volumes in Asia Pacific sustained
modest growth and there was an improvement in performance in
European activities. As expected third quarter trading in Exel's US
freight management operations remained subdued, largely due to a
challenging domestic market and weak demand for international
export freight. John Allan concluded: "Exel's strategy and
competitive advantage continues to generate profitable revenue
growth. Investment in new systems capabilities and enhanced
business processes are contributing to Exel's delivery of superior
operational excellence. As a result we are confident that, despite
the slow pace of global economic recovery and the continued
weakness of the US Dollar Exel is well positioned to deliver good
growth in the future." -ends- For more information, please contact:
John Dawson, Director of Corporate Affairs Exel plc +44 (0) 1344
744409 Martin Leeburn or Lydia Pretzlik The Maitland Consultancy
+44 (0) 207 379 5151 END
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