The bank debt of Global Automotive Logistics fell two points to 78 on news of declining sales in the European car market. Car sales dropped 2.8% to 1.17 million units in November, compared to 1.2 million a year earlier, according to the European Automobile Manufacturers Association. Global Automotive Logistics, the holding company of CAT, a large European logistics provider for the auto industry, has a large exposure to Renault, which posted particularly bad sales performance in 2005. In the first nine months of 2005, GAL derived Eu534.9 million ($639.6 million) of its vehicle logistics revenue from Renault, compared to Eu137.5 million of revenue from other car makers. In November, Renault revised its profit outlook for 2005 to 3% of revenues from 4%. Renault's sales fell 15% in November after a 12% drop in October.
GAL posted a Eu14.8 million net loss in the third quarter of 2005, compared to a Eu500,000 net loss in the same period of 2004. It made a Eu18.9 million net loss in the first nine months of 2005. Officials at GAL did not return calls.