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Panalpina first half profit up 37.8pc to US$31.3 million as sales rise 1.3pc

SWISS forwarding giant Panalpina posted a 37.8 per cent year-on-year increase in first half reported consolidated profit to CHF29.9 million (US$31.3 million), drawn on revenues of CHF2.63 billion, up 1.38 per cent.

"Thanks to strict cost management we improved EBIT quarter-on-quarter in the first half-year of 2017 and restored profitability in ocean freight in the second quarter," said Panalpina CEO Stefan Karlen. 



"With the successful implementation of our new IT system in the key market Germany, we also gained further momentum in our operations transformation programme," he said.



Air freight volumes increased seven per cent in the first six months of 2017 in line with an estimated market growth of about eight per cent. 



High demand for air freight capacity pushed up rates which put margins under continued pressure. But gross profit per ton decreased 10 per cent to CHF623, resulting in a gross profit overall of CHF294.6 million. Reported EBIT in air freight increased from CHF33.1 million to CHF39.1 million. 



"We expect ocean carriers and airlines to be much more disciplined than in previous years in managing transport capacity and sustaining freight rates," says Mr Karlen. 



"While we are confident that we can improve unit profitability in ocean freight in the second half of the year, unit profitability in air freight will remain under pressure. We will therefore concentrate on what we can influence directly: controlling cost very effectively and pushing ahead with our operations transformation programme," he said.



Panalpina operates a global network with 500 offices in more than 70 countries, and it works with partner companies in another 100 countries, employing 14,500 people worldwide.
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