Panalpina profit slips 0.3pc to US$88.6 million as revenue falls 16pc
SWISS forwarding giant Panalpina's net profit slipped 0.3 per cent year on year to CHF87.5 million (US$88.6 million) to 2015, drawn on revenues of CHF5.8 billion, which fell 16 per cent.
But consolidated profit and EBIT improved slightly. Adjusting for currency, this represented an increase of 16.3 per cent and 15 per cent respectively over 2014, said the company statement.
"However, air freight volumes contracted 2.5 per cent, while ocean freight volumes contracted 0.8 per cent. Logistics recorded its fourth positive consecutive quarter in 2015," said CEO Peter Ulber.
In terms of containers, Panalpina lifted 1,594 TEU in 2015, down 0.8 per cent year on year, but an improvement on the 1,495 TEU handled the year before in 2013.
During the year Panalpina expanded its air and ocean freight services, opened new centres for logistics manufacturing services (LMS) and expanded into new countries and markets.
"In addition, our disciplined approach to working capital and productivity improvements allowed us to optimise costs and to generate solid free cash flow," Mr Ulber said.
"Our strategy is focus on opportunities that will drive growth organically, by way of acquisitions and through innovation, and to continue to improve productivity and optimise costs across all businesses and geographies.
The Swiss National Bank's decision in January led to an immediate strengthening of the Swiss franc and significantly impacted our profits. Likewise, the headwind from countries with slowing economies continued to have an effect throughout the year.
The record-low oil and gas prices heavily impacted the energy sector. Neither Panalpina nor its customers were spared the effects, which lead to fewer investments and projects being either postponed or cancelled.
The extremely soft market in both ocean freight and air freight, combined with increased rate volatility, led to intensified speculation in the market and further exacerbated the situation.
In addition, this year was marked with a consolidation of the industry by both competition and carriers, while new competitors continued to enter the market
The opening of new offices in Kenya and Morocco, announced in 2014, was completed in 2015. We saw an important expansion of our value-added logistics services with several large and important contracts for logistics manufacturing services, reverse logistics and advanced inventory forecasting in locations such as Panama, Dubai and Hong Kong.
We strengthened our focus on the perishables industry with the acquisition of Airflo, a specialised forwarder of freshly cut flowers and plants with offices in Kenya and the Netherlands. New competency centres were created in Norway, the UK and the Netherlands to complement our existing expertise in Chile, Columbia, Ecuador, Mexico and Peru.
Perishables is a fast-growing sector with excellent potential for both Air and Ocean Freight and we plan to expand further in this industry over the coming years.
SWISS forwarding giant Panalpina's net profit slipped 0.3 per cent year on year to CHF87.5 million (US$88.6 million) to 2015, drawn on revenues of CHF5.8 billion, which fell 16 per cent.
But consolidated profit and EBIT improved slightly. Adjusting for currency, this represented an increase of 16.3 per cent and 15 per cent respectively over 2014, said the company statement.
"However, air freight volumes contracted 2.5 per cent, while ocean freight volumes contracted 0.8 per cent. Logistics recorded its fourth positive consecutive quarter in 2015," said CEO Peter Ulber.
In terms of containers, Panalpina lifted 1,594 TEU in 2015, down 0.8 per cent year on year, but an improvement on the 1,495 TEU handled the year before in 2013.
During the year Panalpina expanded its air and ocean freight services, opened new centres for logistics manufacturing services (LMS) and expanded into new countries and markets.
"In addition, our disciplined approach to working capital and productivity improvements allowed us to optimise costs and to generate solid free cash flow," Mr Ulber said.
"Our strategy is focus on opportunities that will drive growth organically, by way of acquisitions and through innovation, and to continue to improve productivity and optimise costs across all businesses and geographies.
The Swiss National Bank's decision in January led to an immediate strengthening of the Swiss franc and significantly impacted our profits. Likewise, the headwind from countries with slowing economies continued to have an effect throughout the year.
The record-low oil and gas prices heavily impacted the energy sector. Neither Panalpina nor its customers were spared the effects, which lead to fewer investments and projects being either postponed or cancelled.
The extremely soft market in both ocean freight and air freight, combined with increased rate volatility, led to intensified speculation in the market and further exacerbated the situation.
In addition, this year was marked with a consolidation of the industry by both competition and carriers, while new competitors continued to enter the market
The opening of new offices in Kenya and Morocco, announced in 2014, was completed in 2015. We saw an important expansion of our value-added logistics services with several large and important contracts for logistics manufacturing services, reverse logistics and advanced inventory forecasting in locations such as Panama, Dubai and Hong Kong.
We strengthened our focus on the perishables industry with the acquisition of Airflo, a specialised forwarder of freshly cut flowers and plants with offices in Kenya and the Netherlands. New competency centres were created in Norway, the UK and the Netherlands to complement our existing expertise in Chile, Columbia, Ecuador, Mexico and Peru.
Perishables is a fast-growing sector with excellent potential for both Air and Ocean Freight and we plan to expand further in this industry over the coming years.