European logistics firm Geodis has announced that total group revenue for the three-month period ending September 30, 2006 grew by 3.7 per cent over the same quarter a year ago to EUR898.3 million (US$1.14 billion).The group attributed the increase in revenue to stronger sales in France, Eastern Europe, Germany and Asia. Stronger revenues were recorded despite smaller volumes from some major customers in the hi-tech sector, the company said in a statement. Some unprofitable contracts were also terminated during this period, which a group statement said "adversely affected growth but will have a positive impact on profit." As a result, Geodis is forecasting significant growth in sales and operating profit in the second half of the year, similar to what was achieved in the first half interim results. In the first nine months of the calendar year, total group revenue rose by 6.1 per cent year on year to EUR2.79 billion. For the third quarter of 2006, the group's business activities in its home market of France generated revenues of EUR627.4 million, an increase of 4.65 per cent over the corresponding prior year period. The positive result was driven by volume growth in its Groupage (LTL), Express, and Full Truckload services. However, revenue for the rest of Europe fell marginally by 0.1 per cent to EUR245 million. A group release said that ongoing commercial development in Germany and Eastern Europe offset the termination of an unprofitable contract in Russia and a reduction in the business from major customers in the hi-tech sector in the Netherlands.
For the July to September period revenue from the group's operation in Asia and the rest of the world grew by 18 per cent over the third quarter of 2005 to EUR60.9 million. Geodis said this region experienced strong growth in spite of the cessation of the Carrefour business in South Korea.
