Tuesday, October 20, 2015

Freight Forwarding and Logistics Group Publishes Year to Date Figures

Currency Adjustment a Major Factor
Shipping News Feature
SWITZERLAND – WORLDWIDE – Swiss headquartered freight forwarding and logistics group Panalpina has declared a consolidated profit of CHF 69.3 million (currency adjusted: CHF 75.8 million or +9.5%) for the first nine months of 2015. Group gross profit decreased 6% to CHF 1,107.3 million (currency adjusted: CHF 1,177.0 million or 0%), while EBIT decreased 2% to CHF 92.4 million (currency adjusted: CHF 102.7 million or +9%).

As compared to the previous year EBIT was up in Ocean Freight and positive in Logistics (compared to a loss from January to September 2014) but down in Air Freight. In what it describes as a ‘soft’ air freight market which grew less than 1% from January to September 2015, Panalpina’s Air Freight volumes decreased 2% in the same period. Panalpina transported less oil and gas and automotive cargo, but more perishables. Gross profit per tonne decreased 4%.

Panalpina’s Ocean Freight volumes grew 1% in the first nine months of 2015, which was slightly below market growth of 2%. Gross profit per TEU decreased 3% to CHF 300 whilst Logistics gross profit decreased 10% to CHF 305.5 million against CHF 339.3 million the previous year. Panalpina says this was a result of currency translation and the continued exit from underperforming sites. In the first nine months of 2015, a positive EBIT of CHF 2.0 million was achieved, compared to an EBIT loss of CHF 6.9 million in the same period of last year. Logistics recorded the third positive quarter on EBIT level in a row. Speaking of the figures and future outlook Panalpina CEO Peter Ulber said:

“In the first nine months of the year we succeeded in keeping EBIT and consolidated profit at previous year levels, despite a contracting air freight market in the third quarter, our exposure to the oil and gas industry and historically high IT investments. Currency adjusted, EBIT and consolidated profit would have been up by 9% and 10% respectively. Ocean Freight increased EBIT significantly and Logistics delivered the third positive quarterly EBIT in a row, resulting in an EBIT year-to-date of CHF 2 million compared to a loss of almost CHF 7 million last year.

“The air and ocean freight markets will continue to be soft at best and a rebound of the oil price in the near future seems unlikely. It is all the more important that we continue to control cost with great discipline and implement new IT systems and processes in order to improve our productivity. We will accelerate our investments in less cyclical business to further reduce our exposure to certain industries.”