Panalpina profit down, cuts 10% of jobs
Swiss logistics group Panalpina has posted a 46 per cent drop in full-year net profit recently and said it will cut nearly 10 per cent of its global workforce as the economic crisis bites even deeper. Net profit fell to 114 million Swiss francs (US$98.4 million), in part as a result of its withdrawal from […]
April 1, 2009
Net profit fell to 114 million Swiss francs (US$98.4 million), in part as a result of its withdrawal from the domestic business in Nigeria.
Ã¢â‚¬Å“As a result of the clearly declining freight volumes caused by the current financial and economic crisis, Panalpina will intensify the cost-cutting program it introduced in 2008,Ã¢â‚¬Â the group said in a statement.
Ã¢â‚¬Å“In 2009, this will include the reduction of between 1,400 and 1,600 jobs worldwide, approximately 10 per cent of the overall workforce,Ã¢â‚¬Â Panalpina said, adding that job cuts would affect all parts of the company.
The logistics group said earnings before interest, tax, depreciation and amortisation (EBITDA) was reduced by 100 million francs, which included oneoff charges related to the pull back from Nigeria and 45 million francs in legal fees as antitrust investigations continue. Panalpina withdrew from Nigeria last year following a bribery investigation by US authorities.
Ã¢â‚¬Å“PanalpinaÃ¢â‚¬™s airfreight volumes fell by less than the overall market average, and the company was able to grow faster than the market in ocean freight,Ã¢â‚¬Â the group said.