Panalpina reports stable first half, air freight volumes up 5%
July 19, 2019: Freight forwarder Panalpina has reported profit 4 percent year-on-year decrease in gross profit in the first half of 2019.
According to the company, the decrease in gross profit was chiefly the result of lower margins in air freight and lower volumes from the automotive sector, which shifted into reverse gear.
However, the group EBIT and profit almost reached last year’s levels. From January to June 2019, Panalpina generated an EBIT of CHF 52.1 million (YTD 2018: CHF 54.7 million) and a consolidated profit of CHF 34.0 million (YTD 2018: CHF 36.1 million).
The air freight section performed well as the volumes increased 5 percent compared to the same period last year. Substantially lower volumes in the automotive sector led to the decline in gross profit. EBIT in air freight decreased from CHF 53.4 million to CHF 38.4 million. The EBIT-to-gross-profit margin came in at 11.4 percent, compared to 15.1 percent the year before.
While the ocean freight volumes decreased 3 percent year-on-year. For the first half of 2019, ocean freight recorded an EBIT of CHF 5.5 million, compared to a loss of CHF 5.5 million the year before.
The logistics section also reported decline in volumes 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 CHF 8.1 million for the first half of 2019, compared to CHF 6.8 million for the same period last year.
“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,” says Panalpina CEO Stefan Karlen.
“In a highly uncertain macroenomic and political environment, and against the backdrop of contracting air and ocean freight markets, we will continue to provide our sought-after expertise to existing and new customers,” says Karlen.
“During the coming weeks and months, our focus will remain firmly on living up to our reputation in the market and delivering outstanding service quality.”