Union Disappointed in Company’s Failure to Penetrate Market

Washington, D.C. – The following is the official statement by Teamsters Union Express Division Director Bill Hamilton regarding DHL’s announcement of its intent to cut the majority of its U.S. domestic package market:

“This weekend DHL Express informed top leadership of our union of its intent to withdraw from the U.S. domestic market – an 80 percent cut in package volume. This drastic move by the company will result in significant loss of jobs for our membership at DHL Express. We will do everything within our power to assist our members through this difficult time.

Over the past five years DHL has struggled to penetrate the U.S. domestic ground market. Operational missteps coupled now with the failing economy have contributed to $8 billion dollars of losses for the company since 2003. We are disappointed by DHL’s inability to avoid the pitfalls that have led to this decision.

DHL indicated it is committed to its international product and this decision will not adversely impact the parts of the operation that service those products. Similarly, this decision does not affect its freight forwarding operation, Air Express International (AEI).

Our union will remain vigilant as this situation develops to ensure that our members affected by this cut will be treated fairly through this difficult process.”

Blue Dart Express Limited, South Asia's premier No.1 express air and integrated transportation, distribution and logistics company, today declared its financial results for the quarter and nine months ended September, 2008 at its Board Meeting held in the city today.

Income from operations for the quarter ended September 30, 2008 was Rs 2,628.42 Mn, as compared to Rs. 2,073.00 Mn for the quarter ended September, 2007. Profit after tax for the quarter ended September 30, 2008 was Rs 135.84 Mn as compared to Rs 174.32 Mn in the corresponding quarter ended September 30, 2007.

Speaking on the occasion Anil Khanna, Managing Director, Blue Dart Express Ltd. said "Our results are a validation of our customer's faith in us and of our commitment to serve their business. We are proud to be positioned as the only service provider with a distinctive capability to offer the entire gamut of express distribution solutions. As we move forward, we are committed to providing our customers superior service experience and meet and exceed their express distribution needs.

He further added "Blue Dart is in its 25th year of its operations and it has been our constant endeavour to provide the best quality services to our customers. Since our inception, we have used advanced technology to provide the Indian customer with a competitive edge and an enhanced customer experience."

About Blue Dart:

Blue Dart, South Asia's premier No.1 express air and integrated transportation, distribution and Logistics Company, offers secure and reliable delivery of consignments to over 21,044 locations in India.

As part of the DHL Group (DHL Express, DHL Global Forwarding & DHL Exel Supply Chain), Blue Dart accesses the largest and most comprehensive express and logistics network worldwide, covering over 220 countries and offers an entire spectrum of distribution services including air express, freight forwarding supply chain solutions and customs clearance.

Blue Dart was selected as a Business Superbrand from over 1,699 brands and received the Readers Digest's Most Trusted Brand Gold Award, both for three years in a row and has been listed twice in the Dun & Bradstreet top 500 companies in India. Blue Dart has been awarded the NDTV Business Leadership Award 2008 and the Asia Brand Congress Brand Leadership Award 2008. It has also been listed as one of the Forbes 'Best under Billion' companies.

The Blue Dart team drives market leadership through its motivated people force, dedicated air capacity, cutting-edge technology, innovation, and value-added services to deliver unmatched standards of service quality to its customers. For further information, please visit our website at www.bluedart.com

 

Express-1 Expedited Solutions, Inc. today reported its earnings for the third quarter, ended September 30, 2008. The company's revenue increased by 143%, and operating income rose 160%.

Express-1 Expedited Solutions, through its four operating companies (Express-1, Bounce Logistics, Express-1 Dedicated and Concert Group Logistics), provides the following premium transportation services: same-day delivery, time–sensitive shipping, premium freight brokerage and dedicated transportation throughout North America, as well as domestic and international freight forwarding.

Express-1 Expedited Solutions reported a 143% increase in revenue during the third quarter of 2008 to $32.4 million, compared to $13.4 million for the same period in the prior year. The acquisition of Concert Group Logistics, which had a transaction date of January 1, 2008, contributed $14.3 million to revenues for the period. For the third quarter, the Company’s Express-1 operations expanded revenues by $2.1 million or 18% over the same three-months in 2007. Bounce Logistics gained traction and contributed $3.0 million to the overall increase in revenues. Bounce Logistics is a start-up premium truckload brokerage operation that began operations in March 2008. The Company’s other business unit, Express-1 Dedicated, increased revenues slightly during the period. When combined, the Express-1 Expedited Solutions’ business units delivered record revenue and operating profit during the period and the Company continued to grow at a healthy pace in the current weak economy.

During the same period, income from operations substantially increased by 160% to $2.0 million versus $778,000 during the same period of 2007. Net income improved 131% to $1.2 million or $0.04 per diluted share for the third quarter of 2008 compared to $499,000 or $0.02 per diluted share for the same period in 2007.

“Throughout 2008, our Company has significantly changed its geographical and operating footprints. The acquisition of Concert Group Logistics and the start-up of Bounce Logistics has begun to dramatically improve our results. We’re pleased with our growth and profitability for the third quarter, and happy to share the success of our business units. Given we’re in such a difficult freight environment, these results are a strong testament to our business model and the team we have in place throughout our Company,” stated Michael Welch, the Company’s Chief Executive Officer.

Welch added, “I am extremely pleased with the results we are starting to see from our two new business units, Concert Group Logistics and Bounce Logistics. Each of these businesses has continued to grow throughout 2008. We believe this will set the stage for a potentially stronger 2009, as these two units continue to develop. Complementing the new operations is the continued strong performance within our two historical business units, Express-1 and Express-1 Dedicated. We’ve continued to expand cross selling activities between our business units and are now offering an expanded array of premium services to our broad base of customers. We’re just now capitalizing on the full breadth of our expanded business model and optimistically anticipate that we will see revenue and income continue to expand during the coming quarters.”

Chief Financial Officer Mark Patterson said, “Our Company has continued to demonstrate the significant operating leverage within our model by holding the rate of growth within our Selling, General and Administrative expenses below those of our top line. Increasing by $1.0 million or 44% during the period, our Selling, General and Administrative expenses grew at a rate that is over 300% lower than the rate of growth for our revenue. As a percentage of revenue, SG&A costs continue to decline and represented 10% of consolidated revenue during the third quarter of 2008 versus over 17% during the same period in 2007. Our teams are completing the planned integration from the Concert Group Logistics acquisition and Bounce Logistics start-up. At the same time, our entire organization is focused upon lowering our overall back office costs, in an effort to support our desired levels of profitability. Our entire organization is focused upon controlling cost. We’re very proud of the efforts and commitment of the entire team.”

Outlook

“Looking towards the end of 2008, our business unit Presidents continue to be focused on delivering results that meet the targets we’ve established. Jeff Curry at Express-1, Brian Glaser at Express-1 Dedicated, Gerry Post at Concert Group Logistics and Tim Hindes at Bounce Logistics each lead a team of professionals that are committed to continuing the momentum we’ve established over the past twelve quarters,” Welch said. “Market expansion and attention to customer service are critical to expanding our revenue. Our non-asset based business model has proven itself over many years and in all types of economic climates. We remain optimistic that we’ll be able to deliver the results we committed to at the start of 2008. By remaining focused on our model and our goals, we should be able to continue growing our Company and our profits in future periods.”

For more information, please go to http://www.express-1.com/index.php or contact Mark Patterson at 269-429-9761.


Many major distribution center operators around the country continue to refine their operations. This fast growing trend has created large lots of used quality warehouse equipment and used material handling equipment that is resold.

PRLog (Press Release) – US Based Distribution Center (DC) Operators are lowering costs improving their return on investment by restructuring DC networks.

Many major distribution center operators around the country continue to refine their operations by closing and consolidating distribution center operations. The key objectives are to lower over all operational costs and improve efficiency in order to increase the level of service to their customer base typically retail locations.

“This fast growing trend has created a steady stream of large lots of used quality warehouse equipment and used material handling equipment that is resold in the marketplace.”

This phenomenon has created a large demand for liquidating the old used material handling equipment in the operations that are being closed. In many cases, the used equipment is fully depreciated on the corporate books, but still has plenty of usable life. For large corporations these unusable assets are “found money” that can have a quick impact on quarterly earnings.

In some instances The DC operators when possible, will opt to relocate the equipment into the new operations. Frequently the engineering spec on the equipment will not work in the new locale or the physical specifications will not fit the new application.

Industry experts know that to try to rework or modify equipment to work in the new locale is usually costly and time consuming. Also during the transition of operations, companies need to have the old DC fully operational until the new DC is ready to “go live” and ramp up. This usually makes the case for the corporate decision to liquidate the material handling equipment in the old site being closed or consolidated.

Traditionally in the past, many large auction houses were contacted for “liquidations” of used equipment in the warehouses. The material handling equipment would be sold with the remaining outdated inventory by the auctioneer.

Today more and more DC operators are turning to material handling experts to liquidate their old used material handling warehouse equipment like: used pallet racks, used push back racks, used drive in racks, used carton flow, used picking systems and specialty pallet flow and conveyor systems, used sortation systems, forklifts and structural mezzanines. These material handling equipment experts are able to design, integrate, and install the used equipment in new applications in a close geographic range of 500 miles. This makes it possible for the used material handling equipment buyer to save a great deal of capital on a project with little or no risk to the Distribution Center operations.

This approach typically leads to much higher return in the “sell off” of the used material handling equipment and assets for the DC operator that is closing, moving or consolidating operations.

Then, much of the time, smaller mid size corporations ($20,000,000 to $500,000,000 in annual revenues) seek out the used material handling equipment industry wholesaler to save large amounts of capital when purchasing these niche items for their DC warehouse operations. The used warehouse equipment provider can still save the used material handling equipment buyer between 30% and 60% on a typical purchase, when contrasted to the purchase of the same new equipment.

Some of the used material handling equipment that is more easily specified in these used applications is: used pallet racks, used structural pallet racks, used teardrop pallet racks, used drive in pallet racks, used pallet flow pallet racks, used push back pallet racks, shelving, picking systems, carton flow, picking carts, used gravity conveyors, used belt conveyors, used accumulation conveyor, used palletizing, used shrink wrap equipment, used mezzanines and used forklifts.

Over 90,000 sq ft indoor used warehouse equipment including surplus inventory. Over 5 acres of used pallet racks, used structural racks, used drive in racks, used push back racks, cantelever racks, used conveyors and used forklifts.

Visit http://www.warehousewholesaler.com and see if you can save on purchasing material handling equipment for your company’s requirements.

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