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Apr 7, 2020 at 7:23 PMDespite a deteriorating global economy, the logistics company Dachser reports solid figures for the 2019 financial year. Overall, despite declining shipments and tonnages, there was a revenue increase of 2.9 percent. A total of 151 million euros was invested in logistics facilities and IT systems.
(Kempten, 07.04.2020) Despite a worsening global economy, DACHSER was able to continue growing in 2019. The logistics service provider recorded a solid revenue increase of 1.6 percent to 5.66 billion euros in consolidated net revenue. The growth driver was once again the Business Field Road Logistics, which increased by 2.9 percent to 4.60 billion euros. In contrast, there was a revenue decline of 4.1 percent in the Business Field Air & Sea Logistics, primarily due to the weaker air freight business for automotive customers.
The revenue increase at the group level contrasts with declining shipment and tonnage figures. While the number of shipments decreased by about 3.7 percent from 83.7 to 80.6 million, tonnage slightly fell by 1.0 percent from 41.4 to 41.0 million tons compared to the previous year. “When the economic winds change, quality and reliability matter even more than usual,” says Bernhard Simon, CEO of DACHSER. “That’s why we are even more committed to well-qualified and motivated employees and continuously invest in our network, our processes, and our IT.”
Growth Driver European Land TransportThe Business Field Road Logistics, in which DACHSER combines the transport and storage of industrial goods (European Logistics) and food (Food Logistics), remains both a stability factor and a dynamic growth driver for the company. In 2019, Road Logistics increased its consolidated net revenue by 2.9 percent from 4.47 to 4.60 billion euros. The Business Line European Logistics contributed around 3.63 billion euros (+2.4 percent). “In addition to the ongoing strength in cross-border transports, there is the positive development of contract logistics across Europe. Although the situation in the freight market relaxed during 2019, the shortage of drivers and skilled workers in Germany and many other European countries remains the most pressing challenge,” says Simon.
The strongest growth in 2019 was achieved by the Business Line Food Logistics. DACHSER grew in the area of food logistics by 5.1 percent from 917 to 964 million euros in revenue. Shipments decreased by 1.7 percent, while tonnage slightly increased by 0.6 percent. “Food logistics has been a reliable pillar of our business model for years,” says Simon. “The alliances with our partners in the European Food Network have proven to be exceptionally stable and fruitful.”
Decline in Air & Sea LogisticsThe Business Field Air & Sea Logistics recorded a revenue decline of 4.1 percent from 1.19 to 1.14 billion euros in 2019, and the number of shipments fell by 5.6 percent. “In air and sea freight, we feel the very volatile business that is heavily affected by the disruptions in global trade,” says Simon. “Particularly, the weaker transport demand from the automotive industry in Germany is noticeable in our air freight business.” In 2019, DACHSER made several strategic decisions to future-proof this business field. This includes expanding the customer portfolio to the Life Sciences/Pharma and Fashion & Sports sectors, as well as enhancing rail services along the New Silk Road. Air and sea transports, especially in the LCL sector, were further integrated with the European land transport network. Additionally, the self-developed Transport Management System Othello has been rolled out almost completely worldwide. “By mid-2020, we will handle 99 percent of all shipments with our own Transport Management System. Through corresponding efficiency and productivity improvements, we can then generate additional value for our customers,” says Simon.
Corona Crisis: DACHSER as a Stability Anchor in Difficult TimesTo further improve service quality, the family-owned company invested 151 million euros in the construction or expansion of transshipment halls and warehouses, as well as IT systems and technical equipment in the past year. Similar investments are planned for the current year. However, the ongoing Corona crisis will necessitate DACHSER to adjust its goals, as Simon explains: “The final impacts on our business are difficult to predict; we can only assess the situation anew every day and adapt flexibly and agilely. Volume declines in the industrial goods business are unavoidable given the current restrictions on business life, especially in Spain and France. However, we are consciously well-positioned in terms of service portfolio and customer structure, allowing us to adapt well to changing conditions. In the food sector, we are a system-relevant component of basic supply logistics, where we expect relatively stable business.”
DACHSER was able to further increase its equity ratio in 2019 to over 57 percent. With around 31,000 employees, DACHSER employs more people than ever in the company’s history. “We are very proud of this, as our employees are the heart and backbone of our service. Securing jobs is our top priority in 2020,” concludes Simon. “We also want to remain a stable and reliable partner for customers and transport companies. We are all facing the same challenges. Together, we will weather the Corona crisis with fair prices and fair compensation and lay the foundation for future growth.”
Photo: Dachser
