LeasePlan N.V.'s Alpharetta, Ga.-based U.S. fleet management business recorded a 6% profit margin in 2016 during a year in which the company was sold and completed restructuring, the company said in its annual report.
The company also mapped out its strategic direction to 2020 to maintain its leasing core leasing business, enhance profitability, and enhance mobility services. LeasePlan N.V. plans to increase partnerships with ride-hailing and car-sharing companies. On March 27, the company formed a pan-European partnership with Uber.
LeasePlan USA brought in 312.8 million euros ($333.6 million) in revenue in 2016, and booked 18.9 million euros ($20.2 million) in net operating income. Net income was 11.9 million euros ($12.7 million). The company reported 568 full-time employees at the end of the year.
During a year in which the global fleet management company was sold, LeasePlan N.V. increased overall revenue, profitability, and vehicle count. LeasePlan N.V. increased revenue by 3% to 9.2 billion and net profit by 0.3% to 7% with 455.3 million. The company increased the number of vehicles it manages by 8% to 1.7 million.
Factors that contributed to the growth include an increase in small and medium fleet leasing, retail leasing, and "low single-digit growth" with corporate clients, according to the report.
Investor consortium LP Group BV competed its acquisition of LeasePlan NV for $4.05 billion in late March. In September, LeasePlan N.V. appointed Tex Gunning as CEO, who restructured the company into a more centralized organization in the fourth quarter, according to the report.
LeasePlan USA saw its leadership turn over with the retirement of president and CEO Mike Pitcher at the end of 2016. In February, the U.S. unit named Jeff Schlesinger, a 20-year veteran of GE Capital, as its CEO.
LeasePlan N.V. has also announced the departure of Guus Stoelinga, its chief financial and risk officer.
Read the full annual report here.
Originally posted on Automotive Fleet