“Our second quarter results show a slight recovery of our business,” said CEO Peter Ulber. “All our products managed to gain market share. Ocean Freight and Logistics show double-digit growth in terms of gross profit, and also Air Freight is growing again, albeit moderately.”
|(CHF million)||Q2 2013||Q2 2012*||YTD 2013||YTD 2012*|
|Net forwarding revenue||1,726.5||1,667.6||3,328.0||3,207.5|
|Consolidated profit / (loss)||24.1||16.8||38.4||(24.1)|
* Personnel expenses and income tax expenses in 2012 have been restated due to the application of IAS 19 revised.
The EMEA region saw an increase of gross profit by 9% to CHF 196 million. The Group’s Asian export volumes to Europe saw moderate growth and the gross profit in Asia Pacific went up by 8% to CHF 81 million. Strong Latin American trade positively impacted gross profit in the Americas, which reached CHF 122 million in the second quarter of 2013 (+12%).
Ocean Freight volumes are growing continuously and again reached a new record for the second quarter 2013. Panalpina shipped 5% more TEUs (twenty-foot equivalent units) than in the corresponding period last year, expanding well ahead of the market which grew by approximately 2%. Gross profit per TEU was above prior year (+8%) and remained stable quarter-on-quarter. As a result, gross profit increased by 13% to CHF 125 million.
In Air Freight, Panalpina moderately outperformed the market. The volumes increased by 3% while the market did not grow in the second quarter (0%). The transported volumes of Panalpina’s customers in the high-tech and chemicals sector remained at relatively low levels. Consumer and retail, as well as healthcare and oil and gas customers however grew substantially. Gross profit per ton of air freight year-on-year was stable but further improved compared to the first quarter 2013. Growing volumes led to a 3% year-on-year gross profit increase to CHF 166 million.
Panalpina’s Logistics grew by a solid 19% and reached a gross profit of CHF 109 million. The investments in people and IT solutions to broaden the Value-Added Services portfolio continued to drive and support growth.
The Group achieved an EBITDA of CHF 52 million in the second quarter of 2013, an increase of 58% compared to the prior year figure and therefore reversing a trend of two years of profit declines. The EBITDA-to-gross profit margin increased to 13% from an underlying 9% in the previous year. Year-on-year the operating expenses increased by 5% primarily as a result of on-going investments in business development – personnel expenses remained flat. All in all, Panalpina reported a consolidated profit of CHF 24 million for the second quarter of 2013.
“We don’t expect any fundamental changes in the world economy but still anticipate a continuing recovery in our Air Freight business. Ocean Freight as well as Logistics Value-Added Services are on track and the Group’s profitability is slowly recovering” said Ulber. “Our sales force will focus on growth in strategic trade lanes and the further development of a balanced customer portfolio. We will selectively invest in our business platform while strict cost management will remain a top priority.”