Panalpina posts Q2 EBITDA loss of US$61 million

THE Panalpina Group has announced an EBITDA loss of CHF64 million (US$61.3 million) in the second quarter. This is due to a CHF128 million provision to cover potential fines and compliance consultancy costs related to the company's alleged violations of the US Foreign Corrupt Practices Act (FCPA) and US antitrust laws.

Excluding this provision, EBITDA amounted to positive CHF64 million in the second quarter.

The group said it experienced substantial growth in forwarding volumes in both air freight, up 36 per cent, and ocean freight, up 19 per cent year on year, gaining market share in both segments.

At the same time, the company increased profitability per freight unit quarter on quarter and was able to keep costs under control. The settlement negotiations with the US authorities are expected to be concluded in the second half of the year.

"The global markets continued to recover in the second quarter of 2010 and we achieved above-average growth in our forwarding volumes. We even had the best June ever in terms of air freight volumes," said CEO Monika Ribar.

Looking to the rest of the year, CEO Monika Ribar is cautiously optimistic, "I am convinced that the measures we have put in place are taking effect and look forwards to our future business development with confidence. In the coming months profitability will remain our chief priority."
(Source:www.schednet.com)