The third quarter of 2012 showed mixed results for the Panalpina Group. Gross profit increased by 7% year-on-year, driven by a solid performance in Logistics and Ocean Freight, but it was negatively impacted by a weak performance in Air Freight. Following a disclosure of preliminary figures in October, the Group today confirmed that the EBITDA came in at CHF 18 million.
Panalpina’s operations at Brussels airport are the latest to obtain official GDP (Good Distribution Practice) certification. Having not only fully GDP compliant but also officially GDP certified facilities at strategic locations around the globe, is part of the company’s strategy to service its growing customer base in the healthcare industry.
Panalpina, one of the world’s largest freight forwarding and logistics companies, says its customers in the healthcare industry could make significant cost savings in their supply chains by working together, such as by sharing transport space.
As one of the world's leading providers of supply chain solutions, Panalpina has assumed responsibility for BMW's spare parts logistics operations in Brazil with immediate effect. Panalpina will run a new distribution center for the automotive manufacturer in the country.
Preliminary financial figures for the third quarter of 2012 indicate that the EBITDA of the Panalpina Group will come in at between CHF 15 and 20 million, which already incorporates a one-off extraordinary charge of CHF 12 million. Profitability was negatively impacted by disappointingly weak Air Freight volumes (-8% year-on-year) and a higher cost base. In September, the Group recorded particularly low Air Freight volumes.
Panalpina has launched three new direct Less than Container Load (LCL) services from Asia to Europe. Operated by Pantainer Express Line, the weekly guaranteed services from Singapore to Prague (Czech Republic), Singapore to Budapest (Hungary) and Shanghai to Graz (Austria) cut transit times and CO2 emissions.
One-fifth of Panalpina’s air cargo moved on specific routes within its own controlled air freight network today is temperature sensitive cargo. Each temperature-controlled shipment is equipped with RFID (radio-frequency identification) sensors, from pick-up to final delivery if desired. Demand for such shipments is rising, not only in the healthcare but other industries as well. As a consequence, Panalpina is extending its cool chain network with SmartView technology to ensure seamless monitoring, control and documentation. For the best possible transparency, SmartView is also being integrated into the company’s IT platforms.
Panalpina, one of the world's leading providers of supply chain solutions, has appointed Rod Angwin (52) as its Chief Information Officer (CIO). Angwin has over 30 years of IT experience in a number of major retail and consumer brands. One of the CIO’s most important tasks at Panalpina will be to define and roll out industry-specific customer facing IT solutions.
In the second quarter of 2012, the Panalpina Group achieved a gross profit of CHF 363 million. This was only slightly below the previous year (-2%), despite a globally receding air freight market and several rate increases by ocean carriers that put pressure on margins. Panalpina’s volume growth in both Ocean and Air Freight was above the average market growth. Due to continued cost discipline EBITDA could be kept stable at CHF 34 million quarter-on-quarter. The Group achieved a consolidated profit of CHF 17 million.
The second of two brand-new Boeing 747-8 Freighters enters scheduled service within Panalpina's unique own controlled air freight network. The aircraft in Panalpina livery was delivered to Atlas Air, Inc., yesterday at Boeing’s manufacturing facility in Everett, Washington, and went into operation for Panalpina today.
Panalpina today announced the launch of three new direct Less than Container Load (LCL) services from Japan to Singapore, the world’s second largest container port. The new guaranteed weekly services from Kobe, Nagoya and Tokyo are operated by Panalpina’s in-house carrier Pantainer Express Line. The new services into Singapore seamlessly connect Japan to Panalpina’s global LCL network.
The increasing pressure for companies to maximise efficiency in their supply chains places more emphasis upon their supply chain partners to create new and innovative solutions to help support their efforts in this task through the entire product life cycle. Panalpina addresses this need with four new Logistics Competence Centers and a Supply Chain Solutions Center with dedicated experts.
The first of two brand-new Boeing 747-8 Freighters enters scheduled service within Panalpina's unique own controlled air freight network. The aircraft in Panalpina livery – a first in the company's history – was handed over to Panalpina yesterday on the occasion of a festive out-of-hangar event at Boeing’s manufacturing facility in Everett, Washington.
Pharmaceutical companies are facing increasing challenges in the coming years to comply with official and country-specific rules for storing and transporting their temperature-sensitive products. For that reason, Panalpina, a leading provider of supply chain solutions, continues to obtain GDP (Good Distribution Practice) certifications at strategic locations around the globe.
The Annual General Meeting of Panalpina World Transport (Holding) Ltd., held on May 8, 2012, was attended by shareholders representing 57.98% of the share capital. All proposals of the Board of Directors were approved by a clear majority.
Provisions for the EU and Swiss antitrust fines of CHF 59 million resulted in a loss of CHF 40 million for the Panalpina Group in the first quarter of 2012. Panalpina has decided to appeal the European Commission’s decision to the European General Court. The Group reported a gross profit decrease of 3% (+1% currency adjusted) compared to the first quarter of 2011. Gross profit margin increased to 23.6%. Volumes in Ocean Freight reached a record high and continued to outperform the market (+7% year-on-year). Volumes in Air Freight were affected by a negative market and the profitability restoration program (-8% year-on-year).
Panalpina and RedPrairie have entered into a strategic partnership which enables Panalpina to utilize RedPrairie’s comprehensive suite of powerful supply chain applications. With RedPrairie’s proven technology and support services, Panalpina can strengthen its offering of Value-Added Logistics Services (VAS). The strategic partnership will allow Panalpina, a leading provider of supply chain solutions, to drive automation and efficiency within its Logistics product division.
In 2007, the EU Commission started investigations into alleged antitrust violations within the freight forwarding industry. Today, the Commission has decided on the fines that various freight forwarding companies are to pay for anti-competitive behaviour prior to 2008. Panalpina was ordered to pay a penalty of EUR 46.5 million.
Panalpina, one of the world’s leading providers of supply chain solutions, has launched four new direct Less than Container Load (LCL) services in Latin America through its in-house carrier Pantainer Express Line. The new guaranteed weekly and bi-weekly services will connect Buenaventura (Colombia) with Guayaquil (Ecuador) and Colon (Panama) as well as Santos (Brazil) with Colon and Veracruz (Mexico) with La Guaira (Venezuela). Transit time from Mexico to Venezuela is reduced by 15 days.
The Panalpina Group can look back on a successful 2011. The provider of supply chain solutions further expanded its profit margins and achieved a consolidated profit of CHF 127 million. Currency adjusted, gross profit increased by 12% year-on-year, supported by organic growth across all regions and product divisions. The EBITDA-to-gross profit margin increased to 14.4%. The Group also generated a strong free cash flow of CHF 153 million before money market investments and acquisitions. It plans to distribute a dividend of CHF 2.00 as well as a nominal value payback of CHF 1.90 per share.
Panalpina today announced two key executive hires. Robert Erni (45) is to become the new Chief Financial Officer of the Group. Ferdinand Kurt (59) is to become the new regional CEO for the Americas. Both have an extensive track record in the freight forwarding and logistics industry.
Panalpina, one of the world’s leading providers of supply chain solutions, today announced the launch of six new direct Less than Container Load (LCL) services through its in-house carrier Pantainer Express Line. The new guaranteed weekly services all run out of Shanghai (China), separately connecting to Keelung (Taiwan), Manila (Philippines), Ho Chi Minh City (Vietnam), Bangkok (Thailand), Singapore and Jakarta (Indonesia). The new services meet increased customer demand for reliable LCL solutions on the Intra Asia trade.
Panalpina continues to expand and insource its Logistics offering. The provider of supply chain solutions has opened a new state-of-the-art logistics center on the outskirts of Moscow. It offers 6,000 m2 of storage area. 2,500 m2 are dedicated to cross-docking activities and close to 1,500 m2 to Value-Added Logistics Services (VAS). The new logistics center with a 360 degree service offering will improve efficient and secure cargo flow into Russia for Panalpina’s customers.
BP and Panalpina will join hands to design a best-in-class oil and gas freight forwarding supply chain. The two companies have signed a strategic services master agreement that will tap into Panalpina’s vast Oil and Gas and Panprojects experience. The scope of the multiyear agreement comprises transportation services for air, ocean, road and rail, industrial projects, freight management and other logistics services connected with the exploration and production of oil and gas.