Tipper margins are tight
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• Hauliers' profit margins in 1992 varied from around 5.6% on temperature-controlled distribution, to just 0.2% for tipper operators—agricultural haulage specialists just broke even.
And the highest wages in the haulage industry between 1988 and 1992 were earned in warehousing and distribution, says a report published this week, Road Transport Industry— Financial Trends.
Pre-tax profit margins, wages and return on capital employed vary enormously between the various sectors. Key findings of the report include:
Pre-tax profits among the tanker companies surveyed fell from 5.1% in 1988 to 2.1% in 1989, while return on capital employed fell between 1988 and 1989 from 21.5% to 9.90 and continued to fall to 6.4% in 1992.
International operators enjoyed a stable 16% to 18% return on capital employed for most of the period between 1988 to 1992.
The report Road Transport Industry— Financial Trends was compiled by the University of Westminster for Lloyds Bowmaker Corporate Finance Division.
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