[ Union-Transport Reports higher Revenues and Profits.. ]

Union-Transport Reports higher Revenues and Profits in FY98

Union-Transport reported audited gross revenues of $529million, operat
ing profits of $16.6million and net income of $11.1million for the fis
cal year ended January 31, 1998. This compares with $504million of rev
enues, $14million of operating profits and $8.2million of net income i
n the prior year. With nearly two-thirds of Union-Transport’s worldwi
de revenues earned in currencies other than dollars, FY98 revenues wer
e adversely affected by a strengthening dollar against other currencie
s, especially the German mark and Dutch guilder. During this period, t
he company’s global revenues rose nearly five percent and net income
was 35% higher in FY98 compared to last year.
Union-Transport’s year-end FY98 balance sheet included shareholders e
quity of $564.6million, despite the effect of currency translation adj
ustments. Shareholders equity grew 55% from the prior year, as a resul
t of FY98 earnings and additional shareholder capital resulting from t
he private placement in Europe. Deloitte Touche is the company’s acco
unting firm and audits the U-T operation companies’ and consolidated
groups’ year-end results.
As part of the private placement transaction, Union-Transport Inc. lis
ted 99,849,279 of its common shares on the Luxembourg stock Exchange o
n September 23,1997. Included in the resulted in net proceeds to the c
ompany of $15,471 common shares at $1.27 per share, which resulted in
net porceeds to the company $15,471,000. The Luxembourg Exchange also
approved the listing of 36,5345,586 shares of preferred stock which ar
e convertible on April 30, 2000 to common shares on a one-to one basis
.
“We are building Union-Transport on many fronts.” Derek Jacobs, Unio
n-Transport non-executive chairman said, in announcing the FY98 result
s. “The growth is coming internally, through selective market expansi
on, and key supply chain contracts; further development of our sophist
icated, Internet-based U-TRAC information system for tracking and trac
ing shipments; and aggressive sales efforts in Key global markets. And
, externally, by making strategic acquisitions and linking with networ
k partners who provide greater U-T presence or value added capabilitie
s in the locations and industries where we operate.”
During fiscal 1998, Union-Transport completed the acquistions of prev
ious joint venture partners in Hong Kong and Uruguay, with these compa
nies now being wholly-owned subsidiaries. Full purchases or majority p
ositions were also taken in five companies in Australia, Taiwan, the U
nited States and India, as well as the creation of a new company-owned
office in Peru. Further acquisitions are in process in Key asian and
European markets.
During the fiscal year, Union-Transport’s business grew in all geogra
phic regions and customer segments of the international freight-forwar
ding marketplace; Europe, the Americas, Asia/Pacific and Africa, “Eac
h region’s operations were profitable and customer accounts grew at e
very level throughout the system -- multinational, middle market and s
maller shippers.” Jacobs said, “We are committed to global leadershi
p in logistics services and supply chain management and expect to cont
inue on a fast growth track.”