SCHENKER’S PROFITS FALL IN THIRD QUARTER

SCHENKER’S PROFITS FALL IN THIRD QUARTER    Germany’s Schenker, the transportation division of the Stinnes group, suffered a 24-percent decrease in earnings before interest and tax in the third quarter, to 26 million euro ($26 million).
   Schenker’s external sales rose by 10 percent during the quarter, to 1.57 billion euro ($1.6 billion), from 1.42 billion euro. Gross profit increased by 8 percent over the same period, to 516 million euro ($516 million).
   However, the parent company of Schenker highlighted the improved results of its air and sea freight activities.
   The air and sea freight business produced earnings before interest and tax of 15 million euro ($15 million) in the third quarter, an increase of 18 percent. Sales for this business rose by 2 percent, to 686 million euro ($686 million). Gross profit was up by 5 percent, to 181 million ($181 million).
   Stinnes said that sea freight volumes grew more rapidly than anticipated, in the third quarter. Freight rates increased in the trades from Europe to North America and Asia, and from Asia to North America and Europe. Freight rates from North America to Asia and Europe remained “at extremely low levels” in the latest quarter, Stinnes reported.
   “There was shortage of capacity, especially on the routes to North America,” Stinnes said.
   Air freight exports from Asia have continued the recovery that had started during the first and second quarters of 2001, the company reported.
   Contrary to its air and sea freight businness, Schenker’s European land transportation business posted lower profit results for the third quarter.
“The persisting weak economic trend in Europe generally and in Germany in particular has resulted in a continued modest trend in the area of land transport/logistics,” Schenker said.
   Stinnes, including its Schenker arm, is now part of the German rail group Deutsche Bahn.