EXEL GROUP SEES FALL IN POST-MERGER PROFIT

EXEL GROUP SEES FALL IN POST-MERGER PROFIT    Exel PLC, the U.K.-based international logistics and forwarding group, saw pre-tax profits fall to '85 million ($127 million) in 2000, from '276 million in the previous year, largely because of exceptional costs.
   Exel, the result of a merger between the Exel/NFC and Ocean/MSAS groups, posted an exceptional loss of '91 million ($137 million) last year, including '81 million ($121 million) of merger costs. This compares with pro forma exceptional gains of '81 million in 1999.
   Operating profit from continuing operations increased by 15 percent, to '213 million ($317 million) last year, from '185 million in the previous year.
   Revenue from continuing operations was up by 24 percent, to '4.33 billion ($6.46 billion), as compared with '3.49 billion in 1999.
   Exel said that customer response to its merger has been “very positive,” with over '300 million ($447 million) of new contracts won in 2000.
   Post-merger integration will exceed predicted savings of '15 million ($22 million) a year, the group said.
   Exel’s revenue in the Americas increased by 53 percent last year, to '1.5 billion ($2.23 billion), partly as a result of acquisitions such as that of Mark VII. Operating profit in the Americas increased by 43 percent, to '56 million ($84 million).