Panalpina Outperforms Market In Second Quarter
By Anuja Abraham
In the second quarter of 2012, the Panalpina Group achieved a gross profit of CHF 363 million. This was only slightly below the previous year (-2%), despite a globally receding air freight market and several rate increases by ocean carriers that put pressure on margins. Panalpina’s volume growth in both Ocean and Air Freight was above the average market growth. Due to continued cost discipline EBITDA could be kept stable at CHF 34 million quarter-on-quarter. The Group achieved a consolidated profit of CHF 17 million.
“We managed to gain market shares. We did better than the market not only in ocean freight but also in air freight where the market declined further in the second quarter of 2012“, said CEO Monika Ribar. “In ocean freight, the carrier’s steep rate increases on important routes caused margin headwinds but thanks to our record volumes we could still increase the division’s gross profit.”
Net forwarding revenue in the second quarter went up by 2.4% to CHF 1,668 million. Gross profit in the second quarter almost reached previous year level. It came in at CHF 363 million (-2%) despite a globally receding air freight market and several rate increases by ocean carriers. Continued growth in Latin America led to a new second quarter (and half year) gross profit record of CHF 43 million (+7.5%). The sluggish development of the global economy was reflected in the other regions’ performance. Gross profit in Asia Pacific decreased to CHF 75 million (-3.8%) due to slowing exports to mature markets. In the EMEA region strong exports could only partly offset weak imports resulting in a decrease of gross profit to CHF 179 million (-2.2%). In a weak environment, gross profit also decreased in North America to CHF 66 million (-5.7%). The Group’s gross profit margin decreased to 21.8% in the second quarter (22.8% in Q2 2011) mainly due to the rate increases by ocean carriers but remained stable at 22.7% for the first half.