Panalpina delivers stable profits

JULY 24, 2015: Panalpina has kept profitability firm in the first half of 2015 even with a challenging environment. While the group’s gross profit decreased 5 percent (adjusted at constant currency rates: +2 percent) to CHF 736.1 million, EBIT and consolidated profit remained stable, reaching CHF 60.4 million (+0.4 percent; adjusted: +7 percent) and CHF 45.3 million (+3 percent; adjusted: +10 percent), respectively.

“We succeeded in keeping profitability stable in the first six months of the year despite a soft air and ocean freight market. We are doing an increasingly better job of getting our costs under control. Currency adjusted, profitability was higher than last year,” said Panalpina CEO Peter Ulber. “In the first six months of the year, we grew volumes in line with the market in Ocean Freight but fell behind market growth in Air Freight, where we clearly felt the headwind in the energy sector. Overall, global transport demand softened considerably in the second quarter of the year.”

Group gross profit decreased 5 percent (adjusted: +2 percent) to CHF 736.1 million in the first half of 2015 (HY 2014: CHF 777.9 million). Total operating expenses decreased 6 percent (adjusted: +2 percent) to CHF 649.5 million, (HY 2014: CHF 689.2 million). Panalpina achieved an EBIT of CHF 60.4 million, an increase of 0.4 percent (adjusted: +7 percent) compared to the same period of last year (HY 2014: CHF 60.1 million). The EBIT-to-gross-profit margin came in at 8.2 percent, up from 7.7 percent for the same time period a year before.

Panalpina’s Air Freight volumes decreased 2 percent in the first six months of 2015, while the market grew by 1 to 2 percent. Lower volumes in the automotive and energy sector were at the heart of the decrease in Air Freight volumes. Gross profit per ton decreased 3 percent to CHF 720 (HY 2014: CHF 745), resulting in a gross profit of CHF 293.6 million (HY 2014: CHF 310.8 million). Air Freight achieved an EBIT of CHF 46.0 million (HY 2014: CHF 57.3 million).

Panalpina’s Ocean Freight volumes grew 3 percent in the first six months of 2015, in line with market growth. Gross profit per TEU decreased 7 percent to CHF 299 (HY 2014: CHF 320), which resulted in a gross profit of CHF 237.3 million (HY 2014: CHF 246.6 million). Ocean Freight significantly improved EBIT to CHF 12.8 million (HY 2014: CHF 7.2 million). The EBIT-to-gross-profit margin increased to 5.4 percent for the first half of 2015 (HY 2014: 2.9 percent).

The Group’s Logistics gross profit decreased 7 percent to CHF 205.2 million in the first half-year (HY 2014: CHF 220.6 million) as a result of currency translation and the exit from underperforming sites. Logistics posted a positive EBIT of CHF 1.5 million for the first six months of 2015. A year ago, there was an EBIT loss of CHF 4.3 million for the same period.