Panalpina’s first-half net income down 1.5%
Panalpina, a global provider of forwarding and logistics services, reported net income of 50.9 million Swiss francs ($36.9 million) in the first half of 2003, down 1.5 percent from CHF 51.7 million in the first six months of 2002.
Net revenues in the first six months of this year rose 1.9 percent to CHF 2.53 billion ($1.83 billion), from CHF 2.48 billion in the first half of 2002.
The company posted a gross profit of CHF 603 million ($437.3 million) in the first half of 2003, down 3.4 percent from CHF 624.3 million in 2002. Earnings before interest and taxes (EBIT) were CHF 70.4 million ($51.1 million), down 9.6 percent from CHF 77.9 million in 2002.
The decline in EBIT “can be ascribed to pressure on seafreight margins,” Panalpina said in a statement.
In the first six months of 2003, “owing to the economic situation, business growth in North and South America as well as in Europe was subdued. In Asia, on the other hand, business continued to thrive,” said Bruno Sidler, chief executive officer of the Panalpina Group, based in Basel, Switzerland.
“The first-half results were also impacted by increased costs in seafreight and by the depreciation of the U.S. dollar against the Swiss franc. In South America, business was particularly hit by political factors, notably the ongoing crisis in Venezuela,” Sidler explained.
Panalpina’s air freight and seafreight capacity is purchased and managed through its affiliated ASB companies.