Oss, 8 September 2010
Vos Logistics expects higher revenue and operational results for 2010
- Cautious recovery in demand for transport as from second quarter 2010
- Stronger market position and financial base
European logistics service provider Vos Logistics reports improved operating results in the first half of 2010 in comparison with the first half of 2009. The improvement was due to a recovery in demand for transport as from the second quarter of 2010 and a structural reduction in the cost base. Cargo and Logistics Services reported particularly strong recoveries as from the second quarter. The increased demand for transport has not yet fed through into firmer freight rates.
The measures the current management team has taken to turn the company round had clear benefits in the first half of the year. Increased productivity and efficiency gains produced significant cost savings. The quality of the operational organisation was also strengthened by the implementation of an operational excellence programme. To strengthen its position in the international transport market, Vos Logistics announced further measures in the first half of 2010 to achieve annual cost savings of ca € 6 million. The improved mix of owned and subcontracted capacity has enabled the group to respond more effectively to the wishes of international shippers. The related organisational changes, which will involve the loss of 200 jobs, are progressing according to plan and will be completed in the first quarter of 2011.
Substantial strengthening of financial base
In August 2010 Vos Logistics substantially strengthened its financial position by restructuring its balance sheet. Guarantee capital was increased by approximately € 25 million and interest expense will be reduced. The current credit facilities were amended and renewed to 31 December 2012 in order to cover the expected liquidity requirements.
‘We're back on the way up. Together with the cost savings, the renewed financial arrangements and recapitalisation have created a solid base for the future,' said Ben Vos, CFO of Vos Logistics. ‘Our financial stakeholders have underlined their confidence in the course the company is taking.’
Prospects for 2010: higher revenue and results
Vos Logistics expects to profit from the growth in international transport. The recovery seen in some sectors, such as automotive and consumer products, will continue in the second half of the year. Other sectors, such as construction, are still showing no signs of recovery and further contraction is expected. It is difficult to predict how fast the market will recover. With its effective organisation and solid financial base, however,
Vos Logistics expects to close 2010 with higher revenue and a better operating result than in 2009.
Frank Verhoeven, Vos Logistics' CEO, is confident about the future. ‘Vos Logistics has come through the crisis relatively well. By creating a more flexible organisation, we can respond better to the wide fluctuations in demand for international transport. I am pleased we have seen clear signs of recovery since the second quarter. Although demand for transport remains volatile, I expect it to increase faster than the capacity available in the market. Vos Logistics is well positioned to anticipate a pick-up in demand. The growing scarcity in transport capacity and the sharper focus on sustainability will challenge carriers and shippers to enter into more strategic alliances. Our aim is to provide our customers with sufficient capacity in the short and the longer term.'
For further information, please contact
Frank Verhoeven, CEO Vos Logistics
Waalkade 4, 5347 KS Oss
T: +31 (0)412 699 500
Vos Logistics is a specialist in a wide range of transport and customer-specific logistics services. Through a network of 30 locations, the company is active throughout Europe. With 2,000 employees, it operates some 1,200 vehicles, 2,500 loading units and 120,000 m2 of storage space. In the bulk and volume transport markets, Vos Logistics is one of the largest road hauliers in Europe. The strength of the company lies in its combination of a Europe-wide network, advanced IT systems and focus on quality and service.