Panalpina: Group loss of CHF 70.2 million in 2012

Panalpina reports record high in Ocean Freight, setback in Air Freight and disappointing full-year results for 2012
 
“Our 2012 results are unsatisfactory,” said CEO Monika Ribar. “We did not manage to compensate for the setback in Air Freight. In Ocean Freight and Logistics we considerably expanded our business despite a slowing market growth, but it was simply not sufficient. On the cost side we did not react fast enough,” Monika Ribar summed up the development of Panalpina in the 2012 financial year at the annual report conference.
 
Expressed in figures, the annual report of the globally operating provider of supply chain solutions looks like the following: Net forwarding revenue in 2012 increased by 2 per cent to CHF 6,617 million. 
 
Group gross profit came down slightly by 1 per cent to CHF 1,465 million. Due to the weak Air Freight and higher cost base the underlying EBITDA fell to CHF 121 million (-43 per cent compared with 2011). The underlying EBITDA-to-gross profit margin decreased to 8.3 per cent, down from 14.4 per cent in 2011. The higher cost base and various non-recurring charges led to a group loss of CHF 70 million in 2012 (consolidated profit of CHF 127 million in 2011).
 
Solid organic gross profit growth in Logistics (+8 per cent to CHF 378 million) and Ocean Freight (+5 per cent to CHF 460 million) was overshadowed by a set-back in Air Freight where gross profit decreased by 9 per cent to CHF 627 million in 2012. Accordingly, the contribution of Air Freight to group gross profit decreased in 2012 while the share of Ocean Freight and Logistics increased: In 2012, Panalpina generated 43 per cent of its gross profit in Air Freight (47 per cent in 2011), 31 per cent in Ocean Freight (29 per cent in 2011) and 26 per cent in Logistics (24 per cent in 2011).
 
The Americas region recorded gross profit growth of 3 per cent to CHF 444 million. European imports, particularly from Asia, as well as exports, were weak throughout the year. The EMEA region recorded a gross profit of CHF 716 million, 2 per cent less than in 2011. In Asia Pacific gross profit decreased by 3 per cent to CHF 304 million in 2012.
 
In 2012, Panalpina transported 801,000 tonnes of Air Freight, 6% less than in 2011. The weight and size per shipment in Air Freight decreased substantially in 2012, particularly in Hi-tech and Telecom, but stabilised in the last quarter of 2012. Gross profit per ton decreased by 4% to CHF 782. Panalpina’s Ocean Freight division transported 1,388,000 TEU in 2012, 6% more than in 2011 and a new record for the company. Gross profit per TEU of Ocean Freight remained practically stable at CHF 332 (-1%). In Logistics, Panalpina further expanded its warehousing and distribution activities including Value-Added Services (VAS). By the end of 2012 the company operated a total warehousing space of more than 1.2 million m².
 
In 2013 the group employs around 15,000 people worldwide, operating a global network with some 500 own offices in more than 80 countries, and works with partner companies in a further 80 countries in a volatile market environment. As a response the group has introduced a number of measures aimed at reducing costs and improving operating margins. Given our high exposure to cyclical industries and the trend to lighter shipments in certain product categories, we are also critically reviewing our customer portfolio in Air Freight. In Ocean Freight, we will build on the positive development,” said Monika Ribar. In 2013, Panalpina will continue to invest in Logistics to grow this part of the business.

Quelle: LogEastics

Portal: www.logistik-express.com