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Panalpina quarterly air cargo increases 5pc while rival volumes shrink
SWISS forwarding giant Panalpina recorded a market-beating five per cent increase in air freight volumes during the first quarter.
The company recorded first quarter air cargo volumes of 216,000 tons compared with 205,000 tons for the same period in 2015. It said the air cargo market had shrunk three per cent during the period.
In contrast, Swiss rival Kuehne + Nagel reported a small drop in air freight demand for the period. "While volumes contracted substantially in oil and gas they grew in all other industries including perishables," it said.
US west coast dock strife last year also gave the overall market a one-off boost in 2015 and affected year-on-year comparisons.
In November last year, Panalpina also acquired perishable forwarder AirFlo which contributed to the volume growth.
While volumes increased, air freight revenues experienced a decline, dropping by 5.4 per cent year on year to CHF744 million (US$760.4 million).
Air freight gross profit for the period increased by 0.4 per cent year on year to CHF149 million, while earnings before interest and tax (EBIT) dropped by 27.4 per cent on last year to CHF17.8 million.
It said profitability was affected by lower gross profits in the oil and gas business, an area where it has traditionally been strong. The oil and gas business accounts for around 15-20 per cent of overall gross profits at the company.
Looking ahead, the forwarder expects the air freight market to remain flat while its volumes are expected to end up around five per cent higher than the previous year, taking into account the AirFlo acquisition.
"In the first three months of the year, we succeeded in counterbalancing the lower transport volumes in oil and gas" said Panalpina CEO Peter Ulber.
"This was due to the positive development in the rest of the business as well as the fast adjustment of our cost base.
"The results reflect our changing business mix. While the contraction in oil and gas continued, we saw growth in all the other industries that we serve," Mr Ulber said.
The company recorded first quarter air cargo volumes of 216,000 tons compared with 205,000 tons for the same period in 2015. It said the air cargo market had shrunk three per cent during the period.
In contrast, Swiss rival Kuehne + Nagel reported a small drop in air freight demand for the period. "While volumes contracted substantially in oil and gas they grew in all other industries including perishables," it said.
US west coast dock strife last year also gave the overall market a one-off boost in 2015 and affected year-on-year comparisons.
In November last year, Panalpina also acquired perishable forwarder AirFlo which contributed to the volume growth.
While volumes increased, air freight revenues experienced a decline, dropping by 5.4 per cent year on year to CHF744 million (US$760.4 million).
Air freight gross profit for the period increased by 0.4 per cent year on year to CHF149 million, while earnings before interest and tax (EBIT) dropped by 27.4 per cent on last year to CHF17.8 million.
It said profitability was affected by lower gross profits in the oil and gas business, an area where it has traditionally been strong. The oil and gas business accounts for around 15-20 per cent of overall gross profits at the company.
Looking ahead, the forwarder expects the air freight market to remain flat while its volumes are expected to end up around five per cent higher than the previous year, taking into account the AirFlo acquisition.
"In the first three months of the year, we succeeded in counterbalancing the lower transport volumes in oil and gas" said Panalpina CEO Peter Ulber.
"This was due to the positive development in the rest of the business as well as the fast adjustment of our cost base.
"The results reflect our changing business mix. While the contraction in oil and gas continued, we saw growth in all the other industries that we serve," Mr Ulber said.
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