Panalpina reports growth in profits, air freight volume

The Swiss company, which has been an acquisition target of Danish firm DVS, reported a drop in ocean freight volume last year.    Swiss-based logistics company Panalpina saw year-over-year growth in its profits in 2018 and set an air-freight record, but its ocean freight business had a setback, according to the company’s annual report published Thursday.
   Panalpina reported a consolidated profit of 75.7 million Swiss francs ($75.8 million) in 2018, a 32 percent increase over 2017. Its earnings before interest, tax, depreciation and amortization (EBITDA) nearly doubled to 289.5 million francs, and its earnings before interest and taxes (EBIT) grew 15 percent to 118.4 million francs.
   Revenues also increased to 6 billion francs, up from 5.5 billion in 2017.
   “Panalpina performed strongly overall in 2018, which was another year with a very dynamic market environment,” said CEO Stefan Karlen in the report.
   The company’s ocean freight volume fell 2 percent as it transported 1,484,144 TEUs. Gross profit per TEU increased 7 percent and gross profits rose to 446.1 million francs. Panalpina experienced three successful quarters following a first-quarter loss, according to the report, which resulted in a full-year loss of 1.8 million francs compared to 15.1 million in 2017.
   “In ocean freight, we improved EBIT with every quarter, and even though a small loss still resulted for the full year, we achieved the turnaround,” Karlen said.
   Panalpina’s air freight volume rose 4 percent to 1,038,678 tons. Gross profit per ton increased by 7 percent and overall gross profit grew to 711.7 million francs. The reported EBIT in air freight fell by more than 2 million francs to 108.2 million and the EBIT-to-gross-profit margin dropped about 2 percent to 15.2 percent.
   Logistics gross profits increased 3 percent to 341.9 million francs.
   Panalpina has been an acquisition target of Danish logistic company DSV in recent weeks. Panalpina also entered talks in mid-February about “partnership opportunities” with Kuwait-based Agility while DSV made an all-cash offer.