“These excellent nine months results have been achieved thanks to the continued very strong demand from our worldwide customers throughout all industries,” commented Panalpina’s Chief Executive Monika Ribar. “While all regions contributed with double-digit gross profit growth rates, we keep expanding our market shares in air freight, ocean freight and supply chain management. In view of the overall solid world economy, we are confident to meet our growth targets for 2007.”
|in million CHF||Q1 - Q3 2007||Q1 - Q3 2006||+ / -|
|Net forwarding revenue||6,287.4||5,636.3||11.60%|
|Contribution margin (gross profit)||1,352.7||1,162.3||16.40%|
Contribution margin (gross profit) increased by 11.0% in Central and South America, 14.0% in North America, 16.8% in Asia / Pacific and 18.0% in Europe / Africa / Middle East / CIS, which demonstrates that the solid overall performance continues to be supported by contributions from all of Panalpina’s reporting regions. While Asia-outbound remains the most important traffic generator for the industry, Panalpina experienced particularly strong demands on the Europe-to-Africa and the Latam-to-Noram routes in air freight and in the intra-Asian and Latam-to-Noram traffics in ocean freight.
Panalpina further expanded its market shares by persistently growing above the respective growth rates in all core activities. Air freight tonnages increased by 8.7% (market slightly below 5%) and ocean freight volumes by 15.1% (market 9 to 10%). In terms of gross profit, air freight grew by 19.2%, ocean freight by 8.8% and supply chain management activities by 21.0%.
Panalpina’s strategic key industries, which include the automotive, healthcare, retail and fashion, hi-tech, telecom and the oil & gas sectors, showed very satisfying developments throughout. Among the many business wins in the third quarter were substantial new ocean freight contracts with a global telecommunications solutions provider and a leading car manufacturer as well as major air freight contracts with a global sports apparel manufacturer, a world-leader in mobile communication and a global player in healthcare and lifestyle technology. A further interesting new contract was signed for the transportation of high-value pharmaceutical and healthcare products with Panalpina’s long-standing customer Solvay Chemicals (see separate media release of today).
The effect from the suspension of certain services in Nigeria and related costs (including legal and advisory fees of CHF 2 million) impacted the Group’s Ebitda in the third quarter by CHF 7.5 million. The company is therefore confident that the total Ebitda impact will be confined to the earlier forecasted range of CHF 20 to 30 million for the full year 2007 and CHF 40 to 50 million for 2008. Moreover, the Ebit 2007 suffered from a one-time goodwill impairment of CHF 11.3 million related to the Nigerian subsidiary. Panalpina’s resolute efforts to further strengthen its worldwide compliance organization and staff training initiatives are progressing according to plan.
In view of the generally strong development of the global economies, Panalpina is convinced to further profit from the favorable market trends and to realize its target in line with the financial guidance given for 2007.