Exel’s profit down 12%

Exel’s profit down 12%    Exel plc, the U.K.-based international logistics service provider, saw its net income fall 12 percent to '97 million ($173 million) in 2003 from '110 million in the previous year, as its freight management results weakened in the Americas.
   Exel’s group-wide operating income increased 3 percent last year to '121 million ($216 million) from '118 million a year earlier. Group revenues rose 7 percent to '5 billion ($8.9 billion) from '4.6 billion.
   Exel said its freight management unit, which includes freight forwarding, had worldwide revenues last year of '2.2 billion ($4 billion) an increase of 3.5 percent at constant exchange rates. But the operating income of the freight management arm fell 19 percent in 2003 to '51 million ($91 million).
   The freight management arm’s figures include revenues of '804 million ($1.4 billion) from the Americas down 3 percent. Operating income from freight management in the Americas declined 84 percent to '3 million ($5 million).
   “Trading conditions in the domestic U.S. market remained challenging throughout the year, resulting in a disappointing performance across all operations,” Exel said. The British group described its domestic freight management business in the Americas as its “principal underperforming operation,” but said it expects “some operating improvements” this year.
   Exel’s contract logistics unit increased its worldwide revenues 17 percent at constant exchange rates last year to '2.7 billion ($4.9 billion). The contract unit’s operating income rose 33 percent to '89 million ($159 million).