Panalpina, the freight forwarding and logistics company with headquarters in Switzerland, issued a press release with the results for the first quarter of 2017 (Q1), stating that outperformed the air and ocean freight markets in terms of volume growth.
In a press release, Panalpina detailed that the numbers corresponding to Q1 2017 stayed low compared to the same period in 2016. The swiss company reported an EBIT (earnings before interest and taxes) of 16.4 million CHF (Swiss francs) and a consolidated profit of 12.4 million CHF.
The Gross Profit fell 9%, from 364,9 million CHF in 2016 to 332.7 million in 2017. The EBIT also decreases by 32%.
Panalpina CEO, Stefan Karlen said that the company is facing a slow recovery: “In the first three months of the year, we succeeded in outperforming the markets with volume increases of 8% in Air Freight and 7% in Ocean Freight. As expected, margins remained under pressure; however, they are slowly recovering since we saw an upturn in unit profitability in both Air and Ocean Freight compared to the last quarter of 2016.”
As Karlen said, the air freight volume increased 8% compared with the estimated 6% and maintaining the same profitability levels of 2016.
On the another hand, the ocean freight volumes increased 7%, while the market grew only 4%. The report also highlighted that Transatlantic and Far East trade lanes contributed to achieving these results. However, the gross profit per TEU decreased 17%.
In the logistics sector, the profits decreased 16% and reported an EBIT of 2.4 million CHF, achieving the best results to date in this matter.
Karlen appointed that Panalpina’s expectations for the rest of the year are “cautiously optimistic” in spite of the hard market conditions.