Strong Swiss franc hurts Panalpina results

Panalpina Welttransport’s 2010 earnings have been hit by the strong Swiss franc but the Swiss freight forwarder has no plans to change its reporting currency, chief executive Monika Ribar told Dow Jones Newswires.


“We have sometimes asked ourselves to change the reporting currency," Ribar said. "But changing our reporting currency to the euro, for example, would create other difficulties."


Panalpina said it posted a 7.5 percent rise in 2010 gross profit to US$1.59 billion, up from $1.47 billion a year-earlier. When adjusted for currency effects, the rise was 11.4 percent. The Swiss franc has risen sharply versus the euro and dollar in 2010.


Ribar said that although "one has to learn to live with currency swings," the company is using natural and transactional hedging instruments to shield itself against currency fluctuations.


While Ribar didn't make a precise outlook for the Swiss franc, she said that the currency is likely to stay relatively high given the domestic economy's current strength.


Ribar said the company sees solid demand in 2011, especially in sectors such as the telecommunications industry.
(Source:http://www.cargonewsasia.com)