“We did very well, despite fierce competition and a challenging environment. Our focus on sustainable, profitable growth is clearly starting to pay off,” said CEO Monika Ribar. “We’ve made good progress in volumes while gross profit remained high. In Ocean Freight we outpaced the market in the third quarter. In Air Freight we narrowed the gap considerably.”
Gross profit amounted to CHF 356 million in the third quarter of 2011, resulting in a decrease of 7% (+11% currency adjusted). Gross profit for the first nine months of 2011 came in at CHF 1’100 million, an increase of 1% (+14% currency adjusted). All regions and segments recorded an organic gross profit increase. Asia Pacific achieved a record gross profit for the first nine months. The region also reported the highest gross profit growth in local currencies, followed by North America, Latin America and the EMEA region. Gross profit growth in the segments was led by Air Freight, which again was mainly driven by strong yields in a slowing market. The Group achieved an EBITDA of CHF 54 million in the third quarter (CHF 164 million in the first nine months). CHF 14 million of EBITDA were lost due to currency translation (CHF 29 million in the first nine months). The EBITDA-to-gross profit margin showed a further improvement from Q2 (14.5%) to Q3 (15.2%) despite a slowing environment.
|(in CHF Millionen)||Q3 2011||Q3 2010||YTD 2011||YTD 2010|
|Net forwarding revenue||1,571.00||1,873.70||4,851.80||5,355.30|
In Ocean Freight, Panalpina recorded a volume growth of 8% and therefore gained market share. In fact, the third quarter marked the highest quarterly volumes ever in Ocean Freight. In the first nine months volumes grew 4%. Gross profit per TEU (twenty-foot equivalent unit) of Ocean Freight decreased by 18% (-2% currency adjusted) year-on-year due to the low level of rates and a highly competitive environment. Volume growth in Air Freight was still affected by the profitability restoration program initiated in 2010, where unprofitable business was discontinued. Air Freight volumes were down by 6% year-on-year (-3% in the first nine months). Quarter-on-quarter the gap to the market narrowed from 8% to less than 3%. Yield focus led to a further rise in gross profit per ton, up 3% year-on-year (+23% currency adjusted). Yield management also resulted in a rise of the Group’s gross profit margin year-on-year for the third quarter (22.7% compared to 20.4%).
Panalpina has slightly lowered its market growth expectations for 2011 to 0% for Air Freight and to 4-5% for Ocean Freight. The Group has confirmed its financial targets for 2014. “We are on the right track with profitability and volumes and we expect the organization’s hard work that was put into the new business pipeline to bear fruit. Still, given the volatility of the markets, we rest vigilant,“ said Ribar.