BASEL, Switzerland: Panalpina has reported a consolidated profit of CHF86.5 million on net revenue of CHF6.70 billion for 2014 – compared to CHF11.7 million and CHF6.75 billion respectively in the previous 12 months.
EBIT rose from CHF48 million to CHF116.7 million for the year – prompting Panalpina CEO Peter Ulber to comment: "In 2014, we executed on our clearly laid out strategy. This shows in the results we achieved. All in all, it was a successful year. With plenty yet to do, all eyes are now on 2015."
Panalpina expects the global airfreight market to grow 3-4 percent and the ocean market by 4-5 percent in 2015.
"Given the record low oil price, we expect some headwinds in oil and gas exploration and production activities, but this could also create opportunities in re-engineering supply chains end-to-end and outsourcing. Currency translation will impact our financial results because of the strong Swiss franc. Altogether, 2015 is a very important year for Panalpina," added Ulber.
Company airfreight volumes grew 4.0 percent in 2014 to 857,800 tons carried to produce a gross profit of CHF636 million and an EBIT of CHF112 million – up from CHF72.8 million year-on-year.
Ocean Freight volumes grew 7.0 percent year-on-year and the company transported 1,606,500 TEUs in 2014. However due to high-volume, lower-margin business, gross profit per TEU dropped 7.0 percent to CHF306 million with a resultant gross profit of CHF491.5 million and an EBIT of CHF12.9 million - down from CHF25.0 million in 2013.
Gross profit of the group's logistics services grew 5.0 percent to CHF 458.2 million in 2014. The company said expansion of its Logistics Manufacturing Services (LMS) and a disposal of loss-making road activities resulted in a "drastically reduced EBIT loss" of CHF8.2 million – down from CHF49.9 million in the previous year.