Panalpina is confident despite decline in first quarter profits

Apr 18, 2008

Compared to the 1st quarter 2007, the global transport and logistics group Panalpina has increased its net forwarding revenue in the first three months of 2008, but reports lower net earnings.

The Panalpina Group has recorded a significantly increased net forwarding revenue in the first quarter of 2008 compared to the previous year’s quarter. Gross profit will be slightly below, although currency adjusted above Q1 2007. Consolidated net earnings, on the other hand, have decreased by almost 40% in comparison with Q1 2007, which was the all-time record net first quarter result in the company’s history. Last year’s Q1 result was however strongly influenced by various special factors. The profit decline of the 2008 first quarter result embodies the group-wide impact of the adjusted Nigeria business, as already announced, including related legal fees.

In view of both the positive developments in net forwarding revenue, gross profit and volumes and the first results of the cost optimization program initiated in February of this year, Panalpina is confident that it will achieve its 2008 annual targets.

This release is published in accordance with the ad-hoc publicity rules of the SWX Exchange. Detailed consolidated quarter results as well as additional information will be announced on April 29 as previously advised.

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.