IFCO Continues Growth Path in Q3 2010

IFCO‘s currency adjusted group revenues and operational profitability (EBITDA) both continued to grow in Q3 2010 and YTD 2010 as compared to Q3 2009 and YTD 2009. IFCO’s currency adjusted group revenues grew by 12.0% to US $200.2 million in Q3 2010 compared to Q3 2009 and in YTD 2010 by 9.6% to US $583.8 million.

RPC Management Services delivered significant gains in currency adjusted revenues (Q3 2010 by 20.5%, YTD 2010 by 18.8%), gross profit (Q3 2010 by 39.5%, YTD 2010 by 31.8%) and EBITDA (Q3 2010 by 12.1%, YTD 2010 by 21.1%) in Q3 2010 and YTD 2010 as compared to Q3 2009 and YTD 2009. In the Pallet Management Services business segment revenues grew by 1.8% in Q3 2010 compared to Q3 2009 while gross profit decreased by 0.8% and EBITDA declined by 5.3% compared to Q3 2009. YTD 2010 gross profit grew by 9.2% and EBITDA by 13.9% of Pallet Management Services business segment with stable revenues compared to YTD 2009.

RPC Management Services. Currency adjusted revenues showed continuous growth in recent quarters (Q1 2010 17.3%, Q2 2010 18.3% and Q3 2010 20.5%), resulting from a combination of organic volume growth in our European RPC business as well as strong and sustainable growth in our RPC US business. Our European business benefited from higher usage and increased penetration of our current customer base as well as winning new retailers in certain markets, like Spar in Austria for previous quarters and Carrefour in France for future quarters. Also our efforts to develop the business in East Europe showed good progress and supported the overall positive volume development in Europe. We recently signed an agreement with MERCATOR in Slovenia. Growth in our RPC US business has accelerated even further due to increasing RPC penetration in our existing customer base and a steady flow of new retailers adopting the RPC model. RPC South America’s growth momentum continued to develop.

Pallet Management Services. Revenues were nearly unchanged in recent quarters, however grew slightly in Q3 2010 compared to Q3 2009 and came in close to previous year levels for YTD 2010. Although the market pricing environment remained below 2009 levels, the negative sequential trends flattened out, with Q3 2010 average pallet pricing at the same average levels as Q1 and Q2 2010. Year-over-year pallet sale volumes grew for the first time during 2010 in Q3, as our efforts to recover volumes have been successful. Service related revenues showed a good growth momentum and continued to increase as a percentage of total revenues.

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