Wednesday, August 5, 2009

Panalpina Positive Despite Profit Drop

Increase in traffic in last quarter
Shipping News Feature

SWITZERLAND – Despite a 15 percent drop in its gross profit in the first half of this year as compared to the same period 2008, Monika Ribar, CEO of Panalpina remains upbeat.

In a press release issued yesterday she said that: “Thanks to strict cost management, the pursuit of a long-term, profitable growth strategy, and the fact that we are debt-free and intent on maintaining high liquidity, we are confident about the Group's development over the mid to long term.

With an excellent cash flow position and a forward-looking sales strategy, we are well-positioned to master the challenges of the global business environment.”

Panalpina states that compared with the first half of 2008, airfreight has fallen by 28% in the first half of 2009 and ocean freight by 21%. The group attribute this to the slump in demand for automobiles, telecommunications and hi-technology products, all of which the company specialise in.

However, the group also reports that the period April – June this year has seen a slight increase in activity with airfreight up 3 percent and sea freight rising by 8 percent.

Combined with cost cutting conducted across Panalpina’s global network, which are now 11% lower in the second quarter of 2009 compared with the fourth quarter of 2008, Mrs. Ribar’s confidence seems well placed.

(pic: Monika Ribar)