BASEL, Switzerland: Panalpina has reported a six percent increase in air and ocean volumes for Q1 2014 compared to the same period last year.
Net revenue was almost unchanged at CHF1.59 billion but net profit rose 24.5 percent to CHF17.8 million.
CEO Peter Ulber (left) said it was a "decent start" with both sectors growing ahead of the market while the company further reduced losses in its logistics business.
Group gross profit increased 5.0 percent to CHF384.3 million in the period - the highest first quarter level since the Great Recession of 2008. Total operating expenses were up three percent year-on-year but down five percent quarter-on-quarter while EBIT rose 32 percent to CHF24.5 million.
Gross profit from logistics services increased five percent to CHF107.9 million (Q1 2013: CHF102.1 million) and helped reduce the EBIT loss to CHF5.4 million (Q1 2013: CHF8.6 million).
Commenting on the outlook for the remainder of the year Ulber said: "In the context of difficult market conditions, the results for the first quarter are very encouraging. Our systematic restructuring activities to turn around the company's loss-making operations are ongoing and on track, but these activities will continue to influence the financial results in the short term."
Panalpina says it expects the airfreight market to grow 2-3 percent and ocean trades 4-5 percent this year.