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Panalpina offers forwarding services along with logistics support and supply chain management. Please note that Panalpina does not handle transportation of personal effects, nor household goods for any private individual.

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Further strong growth leads to record figures for the business year 2006

Mar 15, 2007

Panalpina, the global freight transport and logistics group, continues its solid organic growth and posts excellent results for the year 2006 due to a strong performance and further improved profitability. The Group increased its net forwarding revenue by 11.3% to CHF 7,735 million, boosted net earnings by an impressive 52.5% to CHF 184 million and created more than 700 new jobs worldwide.

“These very convincing figures mark a clear record in the history of Panalpina,” commented Chairman Gerhard Fischer, “and are further proof of the success of the Group’s strategy. In a macroeconomic environment generally favorable to the transport and logistics industry, we have again successfully transformed our asset-light business model into attractive services for our highly demanding worldwide customers.”

All targets met and partly exceeded

Monika Ribar, Chief Executive Officer, is “especially pleased with the fact that the results have even exceeded our ambitious budget figures. Profitability has substantially improved and top-line growth was solid. We look back on an excellent year in which the dedicated performance of our employees in all regions has further strengthened Panalpina’s position as one of the global leaders in the industry.”

Panalpina Group: Consolidated Results 2006

in million CHF20062005+ / -
Gross revenue9,3018,28012.30%
Net forwarding revenue7,7356,94911.30%
Contribution margin (gross profit)1,5911,40813.00%
Ebitda31321446.00%
Ebit26116657.60%
Net earnings18412052.50%
Number of employees14,30413,583721
Dividend per share in CHF (gross)3.00 *250.00%

* Proposal to the Annual General Meeting

Strong performance on a worldwide basis

Compared to 2005, net forwarding revenue steadily grew across all regions, increasing by 12.4% in Europe / Africa / Middle East / CIS, by 15.6% in Asia / Pacific, by 10.6% in North America and by 1.2% in Central and South America. All regions contributed to the overall 13.0% increase in gross profit and have substantially improved their profitability. Particularly pleasing were the US operations, which performed above the break-even target. Panalpina’s reported Ebitda of CHF 313 million includes net non-recurring gains of CHF 13.7 million.

One million TEU exceeded

Panalpina increased transported tonnages and volumes in both air freight (+10.5%) and ocean freight (+17.4%) by largely exceeding the respective market growth rates, thus further raising its market share. In ocean freight, the Group transported more than one million TEU for the first time ever. Net forwarding revenue grew by 8.9% in air freight, by 17.8% in ocean freight and by 4.7% in supply chain management, Panalpina’s third core activity, which covers the continued strong customer demand for logistics solutions.

Substantial business wins in all key industries

Panalpina was able to extend existing contracts and gain new business in all industry verticals which it defines as strategically important. These are the automotive, the healthcare, the retail and fashion as well as the hi-tech sectors, all of which are highly globalized and have huge outsourcing potentials. A further excellent performance was achieved in the global oil and gas sector, where Panalpina clearly defended its position as the world market leader for dedicated logistics services.

Cash flow

Net operating cash flow improved 70% to CHF 241 million (from 142 million one year ago). This remarkable result was achieved through the better overall result and improved net working capital that contributed by 19 million. Free cash flow has been CHF 186 million or 54% higher than in 2005.

Dividend increase proposed

In view of the excellent result for the business year 2006, the Board of Directors of Panalpina World Transport (Holding) Ltd. has decided to propose to the Annual General Meeting, to be held on 15 May 2007, that a dividend of CHF 3.00 (gross) per share be paid, representing a payout ratio in excess of 40%.

Outlook

Solid global economic growth, continuing globalization and increasing supply chain complexity are underpinning the forecasts for a further growing demand for freight transport and logistics services on a worldwide scale. The strong momentum experienced in the first months of the current year confirms Panalpina’s positive outlook for 2007.

About Panalpina

The Panalpina Group is one of the world's leading providers of supply chain solutions. The company combines its core products of Air Freight, Ocean Freight, and Logistics to deliver globally integrated, tailor-made end-to-end solutions. Drawing on in-depth industry know-how and customized IT systems, Panalpina manages the needs of its customers' supply chains, no matter how demanding they might be. Energy Solutions is a specialized service for the energy and capital projects sector. The Panalpina Group operates a global network with some 500 offices in more than 75 countries, and it works with partner companies in a further 90 countries. Panalpina employs 15,000 people worldwide who deliver a comprehensive service to the highest quality standards – wherever and whenever.