Friday, 5 September 2008
China acquisition completed
We have now closed on the acquisition of Jiayu, the third largest ground transportation provider in China.
We believe ground transportation is one of the critical elements in the supply chain, and in China it’s a major pain point for many of the clients of YRC Worldwide.
When you consider three years ago we were just getting started in China, to now we have made great progress and it is interesting to view some of the key points.
We have over 250 offices throughout China with approximately 4000 employees. Our revenues on a run rate basis when you include Jiayu will be between $350 to $400 million on an annualized basis. Lastly, from a profitability basis, although many companies told us early on that we would lose money for 3 to 5 years, this has not been the case. In fact, our Joint Venture with JHJ continues to show significant improvement and in July alone they more than doubled their profits compared to July of last year. We’ve always been profitable, every quarter and we have a massive amount of talent on the ground in China.
All of these developments mean we can offer our clients more value in this key market which is great postition to be in.
My blog updates may be a bit limited over the next 2 weeks as I am in China viewing some of these exciting developments.
We believe ground transportation is one of the critical elements in the supply chain, and in China it’s a major pain point for many of the clients of YRC Worldwide.
When you consider three years ago we were just getting started in China, to now we have made great progress and it is interesting to view some of the key points.
We have over 250 offices throughout China with approximately 4000 employees. Our revenues on a run rate basis when you include Jiayu will be between $350 to $400 million on an annualized basis. Lastly, from a profitability basis, although many companies told us early on that we would lose money for 3 to 5 years, this has not been the case. In fact, our Joint Venture with JHJ continues to show significant improvement and in July alone they more than doubled their profits compared to July of last year. We’ve always been profitable, every quarter and we have a massive amount of talent on the ground in China.
All of these developments mean we can offer our clients more value in this key market which is great postition to be in.
My blog updates may be a bit limited over the next 2 weeks as I am in China viewing some of these exciting developments.
Labels: China, JHJ, Logistics, transportation
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