Panalpina recorded stable results for the first half-year 2019 it says, generating an EBIT of CHF 52.1 million (USD 52.89 million), compared to CHF 54.7 million a year earlier and a consolidated profit of CHF 34.0 million (YTD 2018: CHF 36.1 million).
“After it was announced that Panalpina and DSV would join forces, our competitors went more aggressively after our business in the second quarter, but we stood our ground,” says Panalpina CEO Stefan Karlen.
“The decrease in gross profit was chiefly the result of lower margins in air freight and lower volumes from the automotive sector, which shifted into reverse gear. Nonetheless, group EBIT and profit almost reached last year’s levels. Given these circumstances, our stable half-year results are a respectable achievement,” he says.
Panalpina reported a 5.0 per cent rise in Air Freight volumes in the first half of 2019, compared to the same period last year, but gross profit per tonne took a hit.
With slide downwards of 9.0 per cent in gross profit per tonne to CHF 659 (YTD 2018: CHF 725), overall gross profit decreased to CHF 337.2 million (YTD 2018: CHF 354.6 million). The decline was a result of “substantially” lower volumes in the automotive sector, Panalpina says.
In Logistics, gross profit decreased 3.0 per cent to CHF 163.3 million year-on-year (YTD 2018: CHF 168.8 million) due to seasonality and the downturn in the automotive and technology sectors, it says. Nonetheless, the division successfully expanded its Logistics Manufacturing Services and in the second quarter achieved the highest quarterly EBIT ever. EBIT reached CHF 8.1 million for the first half of 2019, compared to CHF 6.8 million for the same period last year.
For the first half of 2019, Ocean Freight recorded an EBIT of CHF 5.5 million, compared to a loss of CHF 5.5 million the year before.
Looking ahead Karlen says: “In a highly uncertain macroenomic and political environment, and against the backdrop of contracting air and ocean freight markets, we will continue to provide our sought-after expertise to existing and new customers.
“During the coming weeks and months, our focus will remain firmly on living up to our reputation in the market and delivering outstanding service quality,” he adds.