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Panalpina 9-month profit up 1.2pc to US$94 million despite 25pc sales fall

SWISS forwarding giant Panalpina posted a 1.2 per cent year-on-year profit increase for the first nine months of 2016 to CHF93.6 million (US$94 million) drawn on revenues of CHF3.5 billion, which declined 25 per cent.

Against the backdrop of receding markets in air and ocean freight, Panalpina's volumes increased nine per cent in air cargo while they decreased nine per cent in ocean freight.

'Our air freight and ocean freight developed contrarily," said Panalpina CEO Stefan Karlen. "This resulted in a practically unchanged overall gross profit when compared to last year.'

Regarding ocean freight, volumes from January to September 2016 decreased nine per cent year on year while the market shrank by an estimated one per cent.

The decrease was mainly due to significantly lower volumes in oil and gas since the beginning of the year as well as a discontinued high-volume contract.

However, gross profit per TEU increased five per cent to CHF314 resulting in a gross profit overall of CHF345 million, up 4.9 per cent year on year.

Regarding air freight, the recently acquired perishables business accounted for about six per cent volume growth and new business accounted for the remaining three per cent growth.

Regarding logistics, gross profit decreased four per cent to CHF293.3 million and adjusted EBIT increased to CHF5 million for the first nine months of 2016, compared to CHF2 million in the same period of last year.

"We are absolutely committed to maintaining our cost discipline while at the same time intensifying our focus on top-line growth,' said Mr Karlen.

'It is our firm intention to grow organically, but also by way of bolt-on acquisitions. In this process, we don't expect any tailwind from the markets in the foreseeable future," he said.

Panalpina employs 15,000 people worldwide, operates through 500 offices in 70 countries and with partner companies in another 90 countries.