Panalpina achieves a solid result in a difficult market environment

PANALPINA Group has succeeded in reducing its cost base year-on-year and so compensate for this year’s fall in volume. Compared to the prior-year period, free cash flow increased by 175 per cent, and compared to the first quarter of 2009, airfreight volume rose in the second quarter of 2009 by three per cent.

However, a large number of new business deals in the small- and medium-sized customer segment failed to compensate for the falloff in volume from large customers. Currency fluctuations also had a negative impact on results. Gross profit fell by 15 per cent compared with the same period in 2008 (-11.5 per cent in local currency terms). Net earnings for the first six months amounted to CHF 16.9 million.

“Panalpina suffered a sharp fall in ocean and air freight volumes in nearly all trade lanes. Newly acquired businesses also failed to make up for the losses, which had a negative impact on the first-half results,” said chief executive office Monika Ribar (right). By contrast, freight volumes increased in the second quarter compared with the first three months.

“In addition,” Ribar added, “thanks to our consistently implemented cost management program, coupled with an excellent cash flow position and a forward-looking sales strategy, we are well-positioned to master the challenges of the global business environment, which is expected to remain difficult in the second half-year.“

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