|In the first quarter of 2011, the Panalpina Group reported strong double digit growth in profitability compared to the first quarter 2010 and volume increases in Air and Ocean Freight. Gross profit increased by 14% (+22% currency adjusted) year-on-year to CHF 373 million which, together with ongoing cost discipline, led to a jump in EBITDA to CHF 56 million (Q1 2010: CHF 10 million). The growth in profitability and improvements in working capital management resulted in an excellent operating cash flow of CHF 108 million (Q1 2010: CHF -13 million).|
|“Panalpina has started very solidly into the year“, said CEO Monika Ribar. “We have been able to take advantage of the measures we put in place last year which have enabled us to improve our profitability. In the first quarter, gross profit grew across all segments and recorded strong increases in all regions, led by the emerging economies in Asia Pacific and Latin America”. She added: “Gross profit per ton and per TEU recorded double-digit growth despite the adverse impact from the strong Swiss franc”.
Currencies impacted financial results
Panalpina Group: Results for the first quarter of 2011 (CHF millions)
|(CHF millions)||Q1 2011||Q1 2010|
|Net forwarding revenue||1’651.9||1’587.8|
|First Quarter Results 2011 – Datasheet||521 Kb|
|First Quarter Results 2011 – Investor Presentation||647 Kb|
|Gross profit increase across all segments
In Q1 2011, Panalpina recorded a gross profit increase across all segments. Gross profit per ton of Air Freight and per TEU (twenty-foot equivalent unit) of Ocean Freight experienced double-digit growth. Air Freight recorded a gross profit increase of 24% to CHF 170 million (+32% currency adjusted) which was driven by higher volumes of 6% and strong yields. Gross profit per ton grew by 17% (+24% currency adjusted). Ocean Freight volume increased by 2% and gross profit grew 12% (+20% currency adjusted) to CHF 113 million resulting mainly from higher yields. Gross profit per TEU increased by 10% (+16% currency adjusted). In the Logistics segment, gross profit grew by 1% (+8% currency adjusted) to CHF 90 million.
Strong cash flow generation
Operating expenses of CHF 318 million remained almost flat year-on-year, helped by the strong Swiss franc. In the first quarter of 2011, the EBITDA-to-gross profit margin increased to 14.9% from 3.1% in the same quarter of 2010. At the same time, the net working capital intensity reached a new all-time low of 1.3% at the end of March 2011 compared to 2.2% at the end of March 2010. These significant improvements in profitability and working capital management led to a boost of operating cash flow, which grew to CHF 108 million in the first quarter of 2011 compared to CHF -13 million in the first quarter of 2010.
Acquisition of Grieg Logistics approved by competition authorities
|The Panalpina Group
The Panalpina Group is one of the world’s leading suppliers of forwarding and logistics services, specializing in end-to-end supply chain management solutions and intercontinental air freight and ocean freight shipments. Thanks to its in-depth industry know-how and state-of-the-art IT systems, Panalpina provides globally integrated door-to-door forwarding services tailored to its customers’ individual needs. The Panalpina Group operates a close-knit network with some 500 branches in over 80 countries. In a further 80 countries, it cooperates closely with partner companies. Panalpina employs approximately 15,000 people worldwide.