|In the first nine months of 2010, the Panalpina Group recorded strong volume growth with a 27% increase in Air and a 16% increase in Ocean Freight year-on-year while continuing to outpace the market in both segments; profitability per freight unit (currency adjusted) continued to increase quarter-on-quarter. Gross profit increased in the third quarter by 13% year-on-year (19% in local currencies). Productivity remained at high levels with expenses growing moderately to accommodate increasing shipment volumes. A settlement in the U.S. anti-trust case has been reached and the final settlement of the FCPA case is expected before year end.|
|“These results confirm that we are on the right path with our focus on a product-driven organization led by our industry verticals. We are continuing to outgrow the market with above average volume growth in both Air and Ocean Freight”, stated CEO Monika Ribar. “With a gross profit increase of 13% compared to the third quarter 2009, our customer-oriented growth strategy is showing results”, she said.
Double digit volume growth, increased gross profit and strong generation of free cash flow
|Productivity remains high, moderate increase in operating costs
Increased shipping volume resulted in a moderate growth in the company’s overall operating costs in the third quarter. In order to accommodate the increase in shipping volumes and business wins, the number of personnel increased primarily in Asia and North America. This strategy has proven effective as productivity has remained at high levels and EBITDA rose to CHF 59 million in the third quarter 2010 (vs. CHF 22 million in the third quarter 2009).
Settlements with U.S. authorities nearing closure
Panalpina Group: Key figures for the third quarter of 2010
|(CHF million)||Q3 2010||Q3 2009||YTD 2010||YTD 2009|
|Net revenue from forwarding services||1,874||1,415||5,355||4,389|
|Consolidated profit (adjusted)||34||5||69||22|
|2010 Third Quarter Review – Datasheet (English)||518 Kb|
|Investor presentation 3Q10final.pdf||489 Kb|
Entering the final quarter of 2010, CEO Monika Ribar comments that “our targets for 2010 are well on track for full achievement in 2010. We have further strengthened the organization with the appointment of 3 new product heads (Air Freight, Ocean Freight, Logistics) who will join the company in early 2011. Fulfilling these key positions with recognised industry leaders marks the completion of the adaptations to our organization which we announced earlier this year. I believe that our focus on customers, products and industry verticals will support our goal to continuously expand our market share. I am very pleased with our increase in profitability which will remain a priority going forward.”
In the fourth quarter 2010, Ms. Ribar is expecting a deceleration of volume growth rates and does not see a peak season shaping up as it has in the past. The peak season for air freight will only be moderate and in ocean freight, the peak season is already over with restocking having taken place early as businesses attempted to avoid shortages and anticipated peak season rates.
Based on the strong year-to-date volume development, Panalpina reiterates its forecasted market growth of at least 15% in air freight and 10% in ocean freight in 2010.
|The Panalpina Group
The Panalpina Group is one of the world’s leading suppliers of forwarding and logistics services, specializing in global supply chain management solutions and intercontinental air freight and ocean freight shipments and associated supply chain management solutions. Thanks to its in-depth industry know-how and state-of-the-art IT systems, Panalpina provides globally integrated door-to-door forwarding solutions tailored to its customers’ individual needs. The Panalpina Group operates a close-knit network with some 500 branches in 80 countries. In a further 80 countries, it cooperates closely with partner companies. The company has about 15,000 employees.