DHL 1999 Annual Report Download - page 66

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Logistics
73
be transported by road, by rail or by intermodal means.
The foundation for success in this area is our extensive,
closely-knit dense and far-reaching network of branch
offices throughout Europe,which will be improved even
further. With few exceptions, rather than maintain its
own fleet of vehicles,Danzas will opt for flexibility, pur-
chasing required transport capacity on the market when
and where it is needed.
The fourth and final thrust of this strategy was laid down
in 1998 with the creation of a systematically market-
oriented organizational structure,undertaken in
response to the insight that only those who meet market
and customer requirements on an optimal basis can
hold their own in the logistics market over the long haul.
Danzas made this strategy public following its transfor-
mation from freight carrier to logistics service provider,
initiating the next stage of its market and customer-
oriented reorganization launched with the aim of
enhancing its corporate value. For Danzas, the goal has
been and will be to selectively strengthen its leading
position in the marketplace and further increase prof-
itability.
Successful year for the new LOGISTICS
corporate division
Danzas joined Deutsche Post World Net in 1999. Our
LOGISTICS corporate division was also set up in 1999
and proceeded to position itself firmly in the market-
place during the year with a number of significant
acquisitions which were integrated into Danzas.During
its first year of operations, LOGISTICS generated EUR
4.2 billion in net sales and moved directly into the front
ranks.In light of the sizable acquisition and integration
costs incurred during the year,we are also satisfied with
the division’s operating profit (EBIT) before amortiza-
tion of goodwill of EUR 49.7 million.All three business
units have developed according to plan. Not yet com-
pletely in place, the Logistics Solutions business unit
was substantially enlarged in 1999 – also with the help
of acquisitions. Our takeover of Nedlloyd ETD played a
particularly important role here.
The first half of the year was somewhat subdued for the
Intercontinental business unit. We were, however, able
to more than make up for this during the second half of
the year when business in Europe and the Far East in
particular began to build up steam.
The integration of ASG was a special factor in the over-
all positive performance posted by the Eurocargo
business unit. By adding ASG to our lineup,we not only
significantly expanded our geographic focus, but also
enlarged our range of products and services.
Market position substantially stronger
Our LOGISTICS corporate division was able to
strengthen its market position through internal and
external growth during the year.One decisive factor in
this development was the ongoing expansion of our
worldwide network,which we pursued through corporate
acquisitions.
Corporate Division
in EUR bn, 1999
Group revenue
22.4
External Revenue Group
LOGISTICS corporate division (net)
Revenue
generated by
the LOGISTICS
corporate division 4.2