Itella 2012

 

Itella Logistics

We support and promote the development of our customers' business by providing service logistics solutions for road, sea, and air freight as well as for warehousing and contract logistics. We provide logistics solutions in eight countries across Northern Europe and Russia. Our partnership networks allow us to offer services on a global scale.

In May, Itella and VR Group signed a letter of intent whereby Itella Logistics acquired the groupage logistics of VR Transpoint in Finland. The agreement was signed in July, and the transaction was carried out at the beginning of October, when VR Transpoint's groupage logistics and PT Logistiikka Oy were transferred to Itella.

The acquisition increased our net sales by about EUR 130 million, in addition to which a little over 800 employees of VR transferred to Itella. The goal of the combination was to eliminate the overlap in operations. The acquisition allows us to offer increasingly wide-ranging and cost-effective logistics services, in addition to which we now have an increasingly strong market position in the Finnish groupage logistics sector. The acquisition also enables us to build a business platform that will serve as a foundation for industry consolidation.

Freight volumes in Finland 2012

Our most sizable investment – the new 77,000-square-meter logistics center in Pennala, Orimattila – topped out in May. At over 500 meters in length and 120 meters in width, the size of the logistics center is equal to 10 soccer fields. The opening ceremonies of Pennala 2 were held at the beginning of January 2013. The entire property will be completed in the summer of 2013, when the space available for our customers at Pennala will total more than 100,000 square meters.

Accounting for the environmental impact of our operations

We offer our customers the best quality while being mindful of the environmental impact of our operations. In early 2012, we expanded the ISO 9001 quality management system and ISO 14001 environmental standard to new locations in three countries. We met the criteria for the first environmental certificate issued in Russia. All in all, the quality and environmental certificates issued to Itella Logistics cover more than 30 locations in seven countries of operation: Latvia, Lithuania, Norway, Finland, Denmark, Russia, and Estonia.

As the largest transport and delivery company in Finland, we play a major role in the development of eco-friendly transportation systems. Our delivery and transport fleet includes more than 4,000 vehicles. In October, we became one of the first Finnish companies to take next-generation electric vans into use. In addition to being noise-free, the first industrially produced Mercedes-Benz Vito E-CELL electric vans do not produce any carbon dioxide emissions.

A consolidated warehouse management system and increasingly efficient groupage transports

At the beginning of the year, we launched a renewal project during which we will consolidate our current warehouse management systems into a single system. The renewal is based on our desire to provide our customers with services of the highest quality. The leading system in the industry will be introduced to our warehouses in Finland over the next two years.

We increased our operational efficiency in several locations over the year. Reorganizations in Sweden and Denmark led to personnel reductions concerning 44 people. The VR Transpoint acquisition resulted in overlap within the organization, due to which we were forced to initiate statutory labor negotiations to increase the efficiency of administrative work and support functions. In Finland, the negotiations led to personnel reductions concerning 24 full-time employees.

Key Figures 2012

  • Net sales EUR 781.5 million
  • Operating result (non-IFRS)* EUR -12.0 million
  • Operating result EUR -9.5 million
  • Personnel on December 21, 2012 7,391

*) Non-IFRS = excluding non-recurring items

Services

  • International road, air, and sea freight, and customs clearance and forwarding services
  • Domestic transport
  • Warehousing and contract logistics
  • Logistics’ IT systems

Countries of operations

  • Denmark
  • Estonia
  • Finland
  • Latvia
  • Lithuania
  • Norway
  • Russia
  • Sweden

Vision

Regional top performer in service logistics.

Mission

We offer logistics to create customer, personnel and shareholder value.

Financial indicators

  • 45 service warehouses and terminals
  • combined area of warehouses totals nearly a million square meters
  • 780,000 international freight shipments


Net sales

Service warehouse capacity

International freight