AFTER suffering a net loss of CHF71.8 million (US$80.9 million) last year, Swiss forwarding giant Panalpina posted a net profit of CHF11.7 million ($13.1 million) in 2013, drawn on revenues of CHF6.75 billion, up 1.5 per cent.
"We recovered from 2012 and gained market share in a low growth environment in 2013," said Panalpina CEO Peter Ulber, who has been at the helm of the company since June.
"I am happy to state that we outperformed the market in both air and ocean freight. But there is still a lot of room for profitability improvements, especially in logistics and ocean freight," said Mr Ulber, whose company is the fourth biggest forwarders behind DHL, Kuehne + Nagel and DB Schenker.
US price-fixing fines totalling CHF40.9 million in 2013 and CHF59.2 million 2012 substantially hit group results, said the company statement.
Panalpina's air freight volumes grew three per cent with the company flying 825,100 tonnes of cargo last year against the 801,400 tonnes flown in 2012.
Panalpina's ocean freight volumes grew eight per cent year on year, better than the market's three per cent growth. The company moved 495,300 TEU in 2013.
Logistics posted strong profit growth of 16 per cent to CHF437.7 million in 2013. Panalpina further expanded its warehousing and distribution activities including value added services in the technology and fashion industries.
But logistics still ended the year with an EBIT loss of CHF39.3 million (2012: loss of CHF39.4 million), caused primarily by a number of loss-making facilities and unprofitable road activities.
"In 2014, we will focus on stabilising our performance in air freight and improving productivity and operating margin in ocean freight," said Mr Ulber. In logistics, the company's top priority is to turn around loss-making facilities. It will also exit from overland capacity commitments while still developing value added services.
Panalpina is a leading provider of supply chain solutions. The company operates through 500 offices in 70 countries, and it works with partner companies in a further 90 countries. Panalpina employs 16,000 people worldwide.