Ford deliveries boost for NFC
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by Karen Miles • NFC's income will receive a welcome boost of up to £3m next year as Exel Logistics takes Ford car parts delivery work from Swift UK.
The South-West contract gain will go some way towards stemming criticism that NFC is not winning enough new work— this adversely affected NFC's third quarter results announced last week (see panel right).
The component deliveries, which took around 33 Swift vehicles a day shipping parts from suppliers to 29 UK Ford sites, complements Exel's contract with Ford for 120 trucks carrying parts from the Midlands.
From 1 January next year Exel will collect 2,500 tonnes daily, taking the contract value up • In the wake of another botch of disappointing financial results from NFC, directors at the transport giant are under pressure to find a new chief executive.
As NFC entered one of the most crucial periods in its postprivatised history, the board was last week fielding criticism over third-quarter figures. Exel Logistics and BRS reported £45.2m operating profit on a £4530.9m turnover for the 40 weeks to 9 July 1994—no change over the same period last year. NFC blames "flat" demand for BRS's contract hire, contract losses and "continual pressure on margins".
Parcels operator Lynx nearly halved its losses to £5.2m to a maximum of £.15m per year.
Over the next two years Exel will also be in a good position to tender for further work delivering Ford parts in the North and the South: this is currently handled by Archbold, Hays and Ford's own fleet.