Panalpina quarterly profit down 5.1pc as revenue declines 13pc
SWISS forwarding giant Panalpina posted a 5.1 per cent decline in first quarter year-on-year operating profit to CHF24 million (US$24.7 million), drawn on revenues of CHF1,304 billion, down 13 per cent.
"We succeeded in counterbalancing the lower transport volumes in oil and gas. This was due to the positive development in the rest of the business as well as the fast adjustment of our cost base," said Panalpina CEO Peter Ulber.
"The results reflect our changing business mix. While the contraction in oil and gas continued, we saw growth in all the other industries that we serve."
Air freight volumes grew five per cent in the first quarter, in a market that shrank by an estimated three per cent.
While volumes contracted in oil and gas they grew in all other industries including perishables. Gross profit per ton decreased five per cent to CHF688 , but remained unchanged at CHF148.6 million .
Air freight EBIT fell 9.1 per cent to CHF17.8 million and the EBIT-to-gross-profit margin for the first quarter decreased to 12 per cent
Panalpina ocean freight volumes decreased 10 per cent year on year while the market shrank by an estimated one per cent.
Yet gross profit per TEU increased 10 per cent to CHF339, resulting in a stable gross profit of CHF118.1 million.
The company's continued exit from underperforming sites meant that the gross profit of the group's logistics product decreased six per cent to CHF98.2 million, but EBIT increased from CHF1.2 million to CHF 1.8 million.
"Regardless of the market situation, servicing our oil and gas customers remains a core offering of Panalpina," said Mr Ulber, "and with our in-house transport engineering department and projects expertise we can provide unique solutions for the sector. At the same time, we will continue to balance our business and product mix throughout the year."
SWISS forwarding giant Panalpina posted a 5.1 per cent decline in first quarter year-on-year operating profit to CHF24 million (US$24.7 million), drawn on revenues of CHF1,304 billion, down 13 per cent.
"We succeeded in counterbalancing the lower transport volumes in oil and gas. This was due to the positive development in the rest of the business as well as the fast adjustment of our cost base," said Panalpina CEO Peter Ulber.
"The results reflect our changing business mix. While the contraction in oil and gas continued, we saw growth in all the other industries that we serve."
Air freight volumes grew five per cent in the first quarter, in a market that shrank by an estimated three per cent.
While volumes contracted in oil and gas they grew in all other industries including perishables. Gross profit per ton decreased five per cent to CHF688 , but remained unchanged at CHF148.6 million .
Air freight EBIT fell 9.1 per cent to CHF17.8 million and the EBIT-to-gross-profit margin for the first quarter decreased to 12 per cent
Panalpina ocean freight volumes decreased 10 per cent year on year while the market shrank by an estimated one per cent.
Yet gross profit per TEU increased 10 per cent to CHF339, resulting in a stable gross profit of CHF118.1 million.
The company's continued exit from underperforming sites meant that the gross profit of the group's logistics product decreased six per cent to CHF98.2 million, but EBIT increased from CHF1.2 million to CHF 1.8 million.
"Regardless of the market situation, servicing our oil and gas customers remains a core offering of Panalpina," said Mr Ulber, "and with our in-house transport engineering department and projects expertise we can provide unique solutions for the sector. At the same time, we will continue to balance our business and product mix throughout the year."