International logistics service provider IFCO has reported year-on-year revenue growth of 9.5 per cent during the third quarter of 2008, increasing by US$16.5m to hit US$190.3m, although group profit dropped 75.6 per cent to US$2.5m.
The group attributed the fall in net profit to higher legal defence costs related to the ongoing ICE investigation, and the US$1m start up of a new RPC Management Services business in Brazil.
Revenue was boosted by RPC's acquisition of STECO and solid organic growth, while Pallet Management Services' revenues jumped 2.9 per cent to US$90.9m compared with the same period of 2007.
In a company outlook statement, the group said: 'In light of the global financial crisis and the significantly reduced expectations for the worldwide economy, the company expects that the economy in Europe will slow down during the remainder of 2008. The economy in the United States has slowed markedly in recent quarters and will likely remain depressed during the remainder of 2008 and into 2009. These conditions will result in difficult conditions in our key markets.
'Despite this environment, IFCO systems expects increased revenues and improved profitability on a group level in fiscal 2008 as compared to fiscal 2007,' the group added.
