JSL increases investments to meet demand
Valor Econômico
The logistics operator JSL - formerly called Julio Simoes Logística - negotiated R$ 2.514 billion (US$ 1.5 billion) last year in new contracts, most of which (R$ 1.3 billion/US$ 764.7 million) were closed in the last three months of 2010. To stand up for the growth above the expectations of the orders in the fourth quarter, the company decided to increase its forecast of investments this year in 44.9% to R$ 710 million (US$ 417.6 million).
A relevant part of the investments will be destined to the increase and renewal of the fleet of the group, which includes the purchase of nearly 2 thousand trucks, says the President of JSL, Fernando Simões. "We have already bought a great part and others are being negotiated", said the Executive, adding the company also plans to acquire nearly 6 thousand cars and 150 buses.
The idea is to make financings and cash flow to fund the investments, while preserving the funds raised in the IPO in April last year, which totaled R$ 477.9 million (US$ 271.5 million). Of the total of new contracts, R$ 279 million (US$ 158.5 million) were already converted into income throughout last year. The rest - R$ 2.235 billion (US$ 1.3 billion) - will be grossed until 2021, of which R$ 383 million (US$ 225.3 million) are estimated for this year - possible adjustments, renewals or reviews in the contracts are not considered in the calculation.
The performance of the orders is related to an increase in the demand in the sectors of mining, agriculture and energy, which, combined, respond for 76% of the new contracts. Besides, the entrance of new customers was responsible for 35% of the new orders. But Simões says the result also results from the diversification of the services offered by JSL, which fits the more and more "customized" demands of the industry.