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Panalpina's Q3 earnings drop 4.7pc y-o-y pulled down by "soft" air freight market
SWISS freight forwarder Panalpina reported third quarter net income of US$25 million, representing a decrease of 4.7 per cent compared to the same period a year earlier, on 7.4 per cent lower net revenue at $381 million.
The company attributed the lower results to a "soft market" for air freight in the third quarter, and said the Swiss franc's stronger performance against the euro plus continued weakness in the oil, gas and automotive markets contributed to its decline, reported Air Cargo World.
"In the first nine months of the year we succeeded in keeping EBIT and consolidated profit at previous year levels, despite a contracting air market in the third quarter, our exposure to the oil and gas industry and historically high IT investments," CEO Peter Ulber was quoted as saying.
From January to September the overall air cargo industry grew by less than one per cent, while the company's volumes decreased by two per cent year on year.
Mr Ulber said for the rest of the year and into 2016, controlling costs "with great discipline" will be a priority as Panalpina implements its new IT system and rolls out other initiatives to improve productivity.
"The air and ocean freight markets will continue to be soft at best, and a rebound of the oil price in the near future seems unlikely," he said.
The company attributed the lower results to a "soft market" for air freight in the third quarter, and said the Swiss franc's stronger performance against the euro plus continued weakness in the oil, gas and automotive markets contributed to its decline, reported Air Cargo World.
"In the first nine months of the year we succeeded in keeping EBIT and consolidated profit at previous year levels, despite a contracting air market in the third quarter, our exposure to the oil and gas industry and historically high IT investments," CEO Peter Ulber was quoted as saying.
From January to September the overall air cargo industry grew by less than one per cent, while the company's volumes decreased by two per cent year on year.
Mr Ulber said for the rest of the year and into 2016, controlling costs "with great discipline" will be a priority as Panalpina implements its new IT system and rolls out other initiatives to improve productivity.
"The air and ocean freight markets will continue to be soft at best, and a rebound of the oil price in the near future seems unlikely," he said.
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