Panalpina’s growth slowed by contract logistics

A “path to recovery” is how Panalpina described its performance over the past 12 months with the Swiss forwarders’ profits still hampered by fines which in 2013, amounting to CHF40.9 million (US$46.7 million), but EBITDA bounced back from CHF34.3 million in 2012 to CHF119.9 million in 2013.


Panalpina’s growth slowed by contract logistics


A “path to recovery” is how Panalpina described its performance over the past 12 months with the Swiss forwarders’ profits still hampered by fines which in 2013, amounting to CHF40.9 million (US$46.7 million), but EBITDA bounced back from CHF34.3 million in 2012 to CHF119.9 million in 2013. Consolidated profit emerged from last year’s loss to a positive figure of CHF11.7 million, on the back of a 2.1 per cent rise in revenue to CHF6.8 billion. Panalpina expect that their business will grow at the same rate as the market in 2014.

The group’s core air freight forwarding business grew at three per cent, better than the overall market growth which Panalpina said was one per cent.

However, gross profit edged up only one per cent, underscoring weak freight rates through the peak-season. Yet better cost control resulted in Earnings Before Interest and Tax (EBIT) up almost half at CHF119.3 million. The oil and gas business in particular, combined with automotive and manufacturing grew whilst the technology sector saw lower volumes.

The smaller ocean freight business saw healthy volumes, up eight per cent yearon- year while rates were almost stable pushing-up gross profit by seven per cent and EBIT leapt from CHF8.9 million in 2012 to CHF28 million with Panalpina attributing this performance to its success in the oil and gas sector with demand growing in “strong doubledigits”.