BASEL: Panalpina reported a consolidated profit of CHF45.3 million on revenue of CHF2.9 billion for the first six months of 2015. EBIT was CHF60.4 million.
"We succeeded in keeping profitability stable in the first six months of the year despite a soft air and ocean freight market. We are doing an increasingly better job of getting our costs under control. Currency adjusted, profitability was higher than last year," said Panalpina CEO Peter Ulber.
"In the first six months of the year, we grew volumes in line with the market in ocean freight but fell behind market growth in airfreight, where we clearly felt the headwind in the energy sector. Overall, global transport demand softened considerably in the second quarter."
The company's airfreight volumes decreased 2.0 in the period, while the market grew by 1.0-2.0 percent. Ocean freight volumes grew 3.0 - in line with market growth - while gross profit per TEU decreased 7.0 percent.
In an investor presentation for the remainder of the year, the 3PL said it was revising downards a market outlook for air and ocean services; putting a strong focus on SAP TM implementation in pilot sites; closing the volume gap in airfreight; maintaining continuous productivity and efficiency improvements in ocean freight; and further developing innovative value-added logistics services.
"Our main focus remains on cost control and improving productivity. We have come a long way in cutting losses and transforming our operations, but we still see a lot of upside potential," added Ulber. "Despite the headwind in the energy sector, we are confident that we can recover lost ground in airfreight during the second half of the year. Our pipeline looks promising."