Schenker’s operating profit jumps 46% after BAX Global purchase

Schenker’s operating profit jumps 46% after BAX Global purchase Schenker, owned by German state-owned rail operator and logistics giant Deutsche Bahn, saw its operating profit rise 46.3 percent in 2006 to 367 million euros ($498.8 million), helped by its takeover of BAX Global at the end of 2005.
   Schenker’s revenue increased 41.7 percent year-on-year to 13.2 billion euros ($17.9 billion), representing 77.7 percent of all sales for the year of DB Logistics, controller of Deutsche Bahn’s entire logistics operations.
   The company is ranked No. 1 for European land transport, No. 2 for worldwide air freight and No. 3 for worldwide sea freight. Worldwide land transport revenue in 2006 was up 22.2 percent to 5.1 billion euros ($6.9 billion); air and ocean freight improved 91.6 percent to 6.9 billion euros ($9.4 billion); while contract logistics/supply chain management rose 10.6 percent to 1.2 billion euros ($1.6 billion).
   Schenker said the purchase of BAX Global, together with a continuing organic growth of 17 percent, also helped it gain significant regional sales growths. In Europe, Schenker’s revenue rose 26.1 percent to 9 billion euros ($12.2 billion); in America it was up 134.6 percent to 1.9 billion euros ($2.6 billion); and in Asia it leaped 167.1 percent to 2.2 billion euros ($3 billion).
   “We have shown that we are fully resolved to seize our chances in the growing logistics industry with both hands. As a world champion for exports, Germany must also lead the field in logistics worldwide. This not only strengthens our economic development, it also secures jobs on the German home market,” said Norbert Bensel, chairman of the management board of DB Logistics.