Panalpina: No plans to participate in consolidation amongst larger forwarders

Panalpina is expecting consolidation among larger players in the freight forwarding industry to continue but has no plans to participate as it concentrates on implementing its new IT system.
Speaking shortly after announcing its full-year results, Panalpina chief executive Peter Ulber ruled out the chance of Panalpina participating in “high risk” takeover activity among the larger players, but said it could look at some smaller acquisitions to expand presence.
“It is true that Panalpina will choose not to participate in [consolidation among the larger players],” said Ulber.
“We think it is much more important to get our new technology environment in place rather than getting involved in a complex acquisition."
But he said consolidation would continue for smaller players as well.
He said: “Last year we started to make our first small acquisitions and we will [look at acquiring] what we can digest. I am fairly sure that in 2016 and 2017 we will continue to make acquisitions based on a geographic level or some kind of industry knowhow.”
In February, the forwarder announced that its Singapore and Switzerland operations had gone live with a new version of the SAP Transportation Management system.
The new system supports the implementation of standard global processes for air and ocean freight and replaces the company’s legacy operational systems.
By the end of the year, it hopes to have migrated around 50% of its network to the new system.
Ulber said that it would be one of the first larger players to implement a new IT system, meaning others would need to go through the process in the years to come.
He also provided an updated on his move up to the role of chairman and the appointment of Stefan Karlen, currently regional chief executive for Asia Pacific, to take over in the chief executive role.
Ulber will become chairman from May and also continue to be chief executive until Karlen takes over in either the third or fourth quarter.
This will give the company time to find a suitable replacement for Karlen in Asia Pacific.
Earlier today, the company announced a 12.7% year-on-year decline in revenues in 2015 to Sfr5.8bn, while earnings before interest and tax (ebit) crept up by 0.4% to Sfr117m and net profits reached Sfr88.2m last year from Sfr86.5m in 2014.
Airfreight demand declined by 2.5% year on year, but the forwarder expects to grow ahead of the market this year.
It blamed the demand decline on lower volumes in the oil and gas and automotive industry, where one major company transitioned to ocean freight.

Share this story

Related Topics

Latest europe news

Liege sees air cargo volumes improve again in May

Belgian freighter hub Liege Airport reported another month of increasing cargo volumes in May. The airport said that cargo tonnages…

Read More

Share this story

AIA appoints McInnes in UK cargo role

AIA Cargo has appointed Colin McInnes as its new vice president cargo UK as the firm looks to expand in…

Read More

Share this story

FedEx plans to cut up to 2,000 jobs in Europe

FedEx is planning to cut thousands of jobs in Europe as it continues to struggle with sluggish market conditions. The…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.