Ex-DHL French parcels unit gets its name back
Ducros Express back in business as new owner begins restructure
The former DHL France domestic parcels unit, bought by financial holding company Caravelle last month, has been renamed Ducros Express.
This was the name of the company, set up by Georges Ducros more than 60 years ago. It was acquired by DHL in 1998.
Eric Lefranc, who headed Caravelle-owned parcel delivery network, XP, has been appointed CEO.
He told IFW his priority was to restructure the parcels operation which made losses of around €80 million (US$104m) in 2009.
The objective is to reduce annual losses to between €15 and €20 million in 2011 and 2012 and, possibly, attain a break-even position in 2013, said Lefranc.
A turnover of €300-€310 million is forecast for Ducros Express this year, compared with €313 million last year. “This largely reflects mediocre market conditions in the parcel delivery sector, where very few operators are currently making money,” he added.
As part of the restructuring, the 3,200-strong workforce will be reduced by “several hundred”, Lefranc said, but he did not go as far to confirm union estimates of 600-700 jobs being axed.
The Ducros Express chief is also looking to drastically cut costs at the company’s HQ , which currently account for 16-17% of turnover, as well as reducing branch depots from 65 to 50.
“The company had a long-standing reputation for high-quality service and the message we want to get across to customers is that this will continue throughout the restructuring period,” said Lefranc.
“Secondly, we’d like to assure them that the major aspects of the redundancy scheme have been agreed with the staff unions at national level setting a platform for good industrial relations within the firm”.
IFW understands DHL put a €240 million recapitalisation and redundancy package on the table as part of the deal with Caravelle. Lefranc declined to comment, but stressed that Caravelle had the financial means to put the company on the path to recovery.
When news broke that Caravelle was mounting a takeover bid, staff unions claimed an investment fund was hardly an ideal buyer and feared its strategy was likely to consist of getting the unit into shape before selling at a comfortable profit.
However, Caravelle President and CEO Pierre-André Martel assured workers that the company would have a long-term future "as an autonomous and profitable operator in an industry undergoing concentration".
Lefranc was keen to emphasise that this remained Caravelle’s position.
“The restructuring measures we are putting in place focus on the company’s long-term development and we are committed to strengthening its position as one of the top-three pure parcel delivery players in the French market”, he said.
This was the name of the company, set up by Georges Ducros more than 60 years ago. It was acquired by DHL in 1998.
Eric Lefranc, who headed Caravelle-owned parcel delivery network, XP, has been appointed CEO.
He told IFW his priority was to restructure the parcels operation which made losses of around €80 million (US$104m) in 2009.
The objective is to reduce annual losses to between €15 and €20 million in 2011 and 2012 and, possibly, attain a break-even position in 2013, said Lefranc.
A turnover of €300-€310 million is forecast for Ducros Express this year, compared with €313 million last year. “This largely reflects mediocre market conditions in the parcel delivery sector, where very few operators are currently making money,” he added.
As part of the restructuring, the 3,200-strong workforce will be reduced by “several hundred”, Lefranc said, but he did not go as far to confirm union estimates of 600-700 jobs being axed.
The Ducros Express chief is also looking to drastically cut costs at the company’s HQ , which currently account for 16-17% of turnover, as well as reducing branch depots from 65 to 50.
“The company had a long-standing reputation for high-quality service and the message we want to get across to customers is that this will continue throughout the restructuring period,” said Lefranc.
“Secondly, we’d like to assure them that the major aspects of the redundancy scheme have been agreed with the staff unions at national level setting a platform for good industrial relations within the firm”.
IFW understands DHL put a €240 million recapitalisation and redundancy package on the table as part of the deal with Caravelle. Lefranc declined to comment, but stressed that Caravelle had the financial means to put the company on the path to recovery.
When news broke that Caravelle was mounting a takeover bid, staff unions claimed an investment fund was hardly an ideal buyer and feared its strategy was likely to consist of getting the unit into shape before selling at a comfortable profit.
However, Caravelle President and CEO Pierre-André Martel assured workers that the company would have a long-term future "as an autonomous and profitable operator in an industry undergoing concentration".
Lefranc was keen to emphasise that this remained Caravelle’s position.
“The restructuring measures we are putting in place focus on the company’s long-term development and we are committed to strengthening its position as one of the top-three pure parcel delivery players in the French market”, he said.
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