Panalpina Holds Steady Despite Oil, Air Hits
Panalpina reported flat consolidated profit of CHF 69.3 million for the first nine months of 2015, despite the downturn in oil and gas and a soft air freight market.
The international freight forwarder and logistics service provider’s result was also impacted by 9.5 percent currency adjustment.
Group profit declined 6 percent to CHF1.11 billion while EBIT slipped 2 percent to CHF 92.4 percent.
“We succeeded in keeping EBIT and consolidated profit at previous year levels, despite a contracting air freight market in the third quarter, our exposure to the oil and gas industry and historically high IT investments,“ said Panalpina CEO Peter Ulber. “Currency adjusted, EBIT and consolidated profit would have been up by 9 percent and 10 percent, respectively.”
Panalpina’s air freight volumes decreased 2 percent, as EBIT fell 20.7 percent to CHF 67.6 million.
Ocean freight EBIT significantly to CHF 22.8 million, compared to CHF 16 million for the year earlier. Logistics delivered the third positive quarterly EBIT in a row, resulting in an EBIT year-to-date of CHF 2 million compared to a loss of almost CHF 7 million last year, Ulber said.
“The air and ocean freight markets will continue to be soft at best and a rebound of the oil price in the near future seems unlikely. It is all the more important that we continue to control cost with great discipline and implement new IT systems and processes in order to improve our productivity,” Ulber said. “We will accelerate our investments in less cyclical business to further reduce our exposure to certain industries.”
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