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Panalpina posts strong organic growth and improved profitability
Panalpina posted convincing results for the first nine months of 2005. Net forwarding revenue grew 13.7% to CHF 4,967 million while the operating result (EBIT) increased 26.0% to CHF 130 million. Net income improved by 31.3% to CHF 103 million.Panalpina’s net revenue growth spread across all regions, with Asia-Pacific (plus 22.9%) contributing most, followed by Europe/Africa/Middle East/CIS (plus 13.5%), North America (plus 11.8%) and Central and South America (plus 9.1%). In its core activities, Panalpina also managed to clearly outgrow the market development with net forwarding revenue growing 9.9% in air freight (market volume growth 3.4%, source IATA) and 12.3% in ocean freight (market volume growth 8’10%) in comparison to the same period in 2004. Supply chain management activities continued to grow very strongly by 21.5%.
Customer wins and bolt-on acquisitions in major key industries
In each of Panalpina’s strategic key industries - namely the oil and gas, hi-tech, automotive, healthcare as well as the retail and fashion sectors - the Company performed well and was successful in expanding current and winning substantial new businesses. In the up-stream supply chain for the oil and gas industry, Panalpina consolidated its worldwide market leadership position through two bolt-on acquisitions in Singapore and Norway and achieved some major business wins in the expanding markets in West Africa, CIS and Central Asia.
Asset-light business model increases flexibility
‘We are pleased with these convincing nine months results and the continued strong organic growth of our core activities,’ commented Panalpina’s President/ CEO Bruno Sidler. ‘Thanks to our asset-light business model, we are more flexible than most of our competitors when it comes to meeting the globalization-related fast changing logistics demands of our international customers. In view of the peak season, which just started, and seeing continued results from our ongoing cost control initiatives, we are confident to meet our targets for the business year 2005.’
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