Tuesday, April 23, 2019

Swiss Freight Forwarding and Logistics Agency Turns in the Figures Which Mean Little

Boss Mentions the Elephant in the Room as Takeover Deadline Approaches
Shipping News Feature
SWITZERLAND – WORLDWIDE – Panalpina released its figures for the first three months of 2019 last week, but nobody with an interest in the freight forwarding and logistics operator will have probably taken a lot of notice, for obvious reasons.

The company’s air freight volumes increased 8% in the first quarter of 2019. However, compared to the same period of last year, gross profit per tonne decreased 10% to CHF 666. Meanwhile ocean cargo volumes for Q1 decreased 3% year-on-year and gross profit per TEU decreased 2% to CHF 296. The logistics sector saw the gross profit decrease 2% to CHF 82.1 million year-on-year.

In terms of overall financials the In the first quarter of 2019 saw Panalpina’s gross profit decrease 3% to CHF 358.1 million while total operating expenses decreased to CHF 290.0 million. EBIT and consolidated profit increased year-on-year by 15% and 16% respectively. EBIT reached CHF 28.1 million compared to CHF 24.4 million a year before and the EBIT-to-gross-profit margin stood at 7.9%, up from 6.6% in 2018. The consolidated profit increased from CHF 16.6 million to CHF 19.2 million. Panalpina CEO Stefan Karlen, commented on the figures before turning to the elephant in the room:

“In the first quarter of this year, Panalpina generated 15% more EBIT and profit than in the same period of last year. We improved profitability despite a challenging market environment and during a time when considerable management resources were absorbed by the M&A topic. This demonstrates the underlying quality and strength of our organization.

“Since the news of DSV taking over Panalpina broke, circumstances have changed. To give any sort of outlook is not only more challenging than ever before, but also constrained by legal restrictions. However, Panalpina continues to conduct business as usual. We have continued to win new business after the transaction was announced and we are determined to keep doing so in the weeks and months ahead.

”We are competing in the market with our strong brand, great capabilities and solid service offering, supporting our customers by providing them with tailored solutions that create value for them. This is our commitment and obligation for the rest of the year.”