EXEL REPORTS STEADY PERFORMANCE IN 2001

EXEL REPORTS STEADY PERFORMANCE IN 2001    Exel plc, the U.K.-based logistics group, said growth in its contract logistics operations in 2001 offset weak markets in air freight and the post-Sept. 11 climate.
   The group reported operating profit from continuing operations of '208.5 million ($296.4 million), down 2.8 percent from 2000. Turnover improved 4.9 percent to '$4.53 billion ($6.44 billion). Profit before tax, goodwill and exceptional items was '186.6 million ($265.3 million), down 2.1 percent.
   The impact of the terrorist attacks of Sept. 11 caused significant disruption to global air-freight movements and impacted the group's profits by about '5 million ($7 million).
   Exel overcame 'difficult underlying markets in freight management and the technology and automotive sectors,' said John Allan, chief executive of Exel. 'Our performance in Asia Pacific and in the Americas was particularly strong given underlying conditions.'
   Total logistics revenues increased 9 percent to '2.32 billion ($3.30 billion), while contract logistics operating provide rose 0.2 percent. Margins generally improved, other than within the United Kingdom, which was impacted by downturns in technology and automotive sectors.
   Freight management turnover improved 1 percent to '2.10 billion ($2.99 billion). Total air weight declined 3 percent worldwide, while sea-freight revenues rose 8 percent.
   The group secured new business in 2001 totaling more than '600 million ($853.0 million) of annualized turnover, of which 30 percent involved integrated supply chain solutions.
   Group freight management margins were lower year on year, particularly in Europe and the Americas, but was offset by improvements in Asia Pacific. Group freight management profit, including the '5 million impact of the Sept. 11 events, decreased 10 percent to '57.3 million ($81.5 million).
   Allan said Exel has 'made a positive start to 2002, despite few clear signs of recovery in our underlying markets. Trading is in line with our expectations and ahead of the same period last year.'