Transport operator Norbert Dentressangle is tightening its belt in anticipation of the economic slowdown, with the objective of becoming a leaner and more flexible business.
Despite posting sales growth of 81% for the first nine months of 2008, this figure was flattered by the group's acquisition of chilled chain operator Christian Salvesen. In announcing its third quarter results, Dentressangle reported a slower pace of revenue growth since July. This was attributable to the group's decision to reduce its vehicle fleet ahead of the expected slowdown in economic activity.
In accordance with its strategy of focusing on operating warehouse space under lease agreements, four distribution sites were divested in the third quarter, generating euro 20M before tax.
The sale, which aims to enable the group to achieve higher flexibility and leaner operations, also allowed it to reduce net debt by euro 45M.
Dentressangle expects its full-year performance to be hampered by the deterioration in the business environment in the final quarter of 2008. It also added that the international situation would slow efforts to improve the performance of the former Christian Salvesen business units and, in particular, the turnaround of the UK transport business, which is currently undergoing restructuring.
Chairman of Dentressangle's management board François Bertreau said: "We have shown our ability to adapt to a more challenging environment ... Although the operational integration of Christian Salvesen is now complete, efforts to improve the performance of the newly integrated businesses have been temporarily affected by the economic downturn. I nevertheless remain confident in the group's ability to leverage its strengths and to outperform our sector over the long term."