Panalpina’s Air Freight volumes increased 8.0 per cent in the first quarter of 2019 compared to the same period last year, but gross profit per tonne decreased 10 per cent to CHF 666 (USD 659.6).
Panalpina CEO Stefan Karlen noted the group improved profitability, “despite a challenging market environment and during a time when considerable management resources were absorbed by the M&A topic. This demonstrates the underlying quality and strength of our organisation,” he says.
Air Freight gross profit decreased to CHF 173.1 million (from 2018’s CHF 177.8 million) and EBIT in Air Freight decreased from CHF 26.9 million to CHF 24.9 million. The EBIT-to-gross-profit margin came in at 14.4 per cent compared to 15.1 per cent a year before.
In Logistics, gross profit decreased 2.0 per cent to CHF 82.1 million year-on-year (YTD 2018: CHF 84.0 million). EBIT reached CHF 2.9 million for the first three months of 2019, compared to CHF 3.4 million for the same period of last year.
Panalpina’s Ocean Freight volumes decreased 3.0 per cent year-on-year and gross profit per TEU decreased 2 per cent with the division recording an EBIT of CHF 0.3 million (2018: Loss of CHF 5.8 million).
Overall in the first three months of 2019, Panalpina improved profitability compared to the same period of last year. Panalpina reported an EBIT of CHF 28.1 million (YTD 2018: CHF 24.4 million) and a consolidated profit of CHF 19.2 million (YTD 2018: CHF 16.6 million).
“Since the news of DSV taking over Panalpina broke, circumstances have changed. To give any sort of outlook is not only more challenging than ever before, but also constrained by legal restrictions,” says Karlen.
“However, Panalpina continues to conduct business as usual. We have continued to win new business after the transaction was announced and we are determined to keep doing so in the weeks and months ahead.
We are competing in the market with our strong brand, great capabilities and solid service offering, supporting our customers by providing them with tailored solutions that create value for them. This is our commitment and obligation for the rest of the year,” Karlen adds.