Panalpina posts record gross profits, credits emerging markets

SWISS global forwarder and logistics provider Panalpina posted an unadjusted 7.5 per cent year-on-year operating profit increase to CHF1.48 billion (US$1.58 billion) on revenues of CHF7.16 billion, a rise of 20 per cent.


"Panalpina recorded its biggest rise in gross profit in the Asia-Pacific (APAC) region, with growth there exceeding 20 per cent to CHF298 million. In Latin America, growth increased by almost eight per cent to CHF156 million. This reflects the vibrant economic development in these regions," said the Panalpina statement accompanying its financial results.


Said Panalpina CEO Monika Ribar: "2010 was very successful. We succeeded in taking full advantage of strong global economic growth. With our gains in market share and robust growth in the adjusted margins, we have solidified our position in the industry. The completion of investigations by the US Department of Justice is a relief for the organisation."


Growth in Panalpina air freight reached 19 per cent, and its ocean freight rose 11 per cent. While these developments were driven by China and other emerging-market economies, North America and Europe also rebuilt momentum and Panalpina increased its air freight volume by 22 per cent to 892,000 tons and its ocean freight volume by 13 per cent to 1,241,000 TEU, the company said.


"The company's performance thus outstripped market growth," said the Panalpina statement.


In ocean freight, Panalpina pursued the expansion of its less-than-container-load (LCL) operations, creating more than 50 new services and completing its network of hubs, said the company. "Moreover, Panalpina invested in additional contract logistics capacities in Latin America, China, North America and southeast Asia," the company said.


Despite the strong signs of global recovery, conditions remain volatile, said the company. "We emerged stronger from the crisis, and the objectives we achieved in 2010 have created an excellent foundation for 2011," said Ms Ribar.


"We anticipate single digit market growth for both air and ocean freight this year, and seek to win further shares of the market. To this end, we will further expand our global sales organisation and continue to invest in growth markets such as China, India and Brazil," Ms Ribar said.
(Source:http://www.schednet.com)