The freight forwarder and logistics provider reported consolidated net profits increased, while gross profits and net forwarding revenue decreased in the first half of 2015 compared to the same period in 2014.
The Panalpina Group reported consolidated net profits increased 3 percent to 45.3 million Swiss francs ($47.2 million) in the first half of 2015 compared to the first half of 2014.
Gross profits at Panalpina decreased 5 percent to CHF 736.1 million, according to the company’s most recent financial statements
The third party logistics provider’s net forwarding revenues fell 9 percent to CHF 2.9 billion.
Airfreight volumes decreased 2 percent in the second half of 2015, while the market grew by 1 to 2 percent. Panalpina attributed the decline to lower volumes in the automotive and energy sectors. Gross profit for the 3PL’s airfreight division fell 5.5 percent to CHF 293.6 on a 3 percent decrease in gross profit per ton to CHF 720.
Ocean freight volumes increased 3 percent, in line with market growth. Gross profits for the division fell 3.8 percent to CHF 237.3 million on a 7 percent decrease in gross profit per TEU to CHF 299.
Panalpina’s logistics division saw gross profits fall 7 percent to CHF 205.2 million. The company attributed the decline to the result of currency translation and the exit from underperforming sites.
Looking forward to the remainder of 2015, Panalpina projected the global air and ocean freight markets will continue to see slow growth throughout the year.
“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,” Panalpina CEO Peter Ulber said in a statement. “Despite the headwind in the energy sector, we are confident that we can recover lost ground in Air Freight during the second half of the year. Our pipeline looks promising.”
Panalpina increases net profits 3%
