Panalpina suffers slight decline in first half profit and revenue
SWISS global forwarder Panalpina recorded stable has a first half year-on-year 5
SWISS global forwarder Panalpina recorded stable has a first half year-on-year 5.5 per cent decline in consolidated profit to CHF34 million (US$34.4 million), drawn on revenues of CHF2.91 billion, down 1.5 per cent.
'After it was announced that Panalpina and DSV would join forces, our competitors went more aggressively after our business in the second quarter, but we stood our ground,' said Panalpina CEO Stefan Karlen.
'The decrease in profit was chiefly the result of lower margins in air freight and lower volumes from the automotive sector, which shifted into reverse gear. Nonetheless, group EBIT almost reached last year's levels.'
Air freight volumes increased five per cent in the first half year on year. Gross profit per ton decreased nine per cent to CHF659, while overall gross profit decreased to CHF337.2 million.
Substantially lower volumes in the automotive sector led to the decline in gross profit. EBIT in air freight decreased from CHF53.4 million to CHF 38.4 million. The EBIT-to-gross-profit margin came in at 11.4 per cent, compared to 15.1 per cent the year before.
Ocean freight decreased three per cent year on year and gross profit per TEU increased slightly to CHF300 million, bringing gross profit to CHF215.9 million. For the first half of 2019, ocean freight recorded an EBIT of CHF5.5 million, compared to a loss of CHF5.5 million the year before.
Logistics gross profit decreased three per cent to CHF 163.3 million year on year due to seasonality and the downturn in the automotive and technology sectors.
Nonetheless, the division successfully expanded its Logistics Manufacturing Services and in the second quarter achieved the highest quarterly EBIT ever. EBIT reached CHF8.1 million for the first half of 2019, compared to CHF 6.8 million for the same period last year.
Panalpina combines air freight, ocean freight, logistics and manufacturing to deliver tailor-made end-to-end solutions for 12 core industries. Panalpina Group operates a global network with some 500 offices in around 70 countries and employs 14,500 people worldwide.