PANALPINA TO SEEK INITIAL PUBLIC OFFERING

PANALPINA TO SEEK INITIAL PUBLIC OFFERING    Panalpina, one the world’s five largest international forwarding groups, said it would seek an initial public offering on the stock market this year or in 2003..
   The sole shareholder of the Swiss forwarding group, the Ernst Gohner Foundation, will decide at a board meeting in June when to schedule the initial public offering, and what percentage of the group’s shares would be sold.
   Martin Spohn, spokesman for Panalpina, said the company could sell from 30 to 60 percent of the group’s equity.
   The stock market initial public offering was not designed solely to raise money, Spohn said.
   “The reason is to get more people to carry the company … and to increase the publicity (of the group),” he said. Spohn said Panalpina has grown substantially in recent years, and targets major global customers that are all listed on the stock market.
   Panalpina’s gross revenue rose 30 percent from 1998 to 2001, to CHF6.7 billion ($4 billion). During the same period, the company’s share capital remained CHF50 million ($30 million), but its retained earnings soared from CHF351 million in 1998 to CHF608 million ($352 million) in 2001.
   The cash-rich Panalpina group had assets totaling CHF1.4 billion ($836 million) at the end of December, and virtually no borrowings.
   Panalpina recently posted improved profits for 2001, despite the adverse economic environment.
   Gross revenue decreased 2 percent to CHF6.7 billion ($4 billion), but operating profit was up 16 percent, to CHF153 million ($91 million), and net profit rose 20 percent, to CHF112 million ($67 million). Panalpina’s return on equity (share capital and retained earnings) last year was 18.3 percent, up from 17.6 percent in 2000.
   Panalpina said it had above-average growth in the core air-freight and sea-freight sectors last year. The company also credited the improved results on optimization of capacity management and process and cost management.
   “In a year of economic difficulties like 2001, targeted and centralized capacity purchasing through the two in-house carriers ASB-Air and ASB-Sea proved highly effective,” the company said. “This system allows Panalpina to adapt quickly and flexibly to the changing market.”
   Last year, Panalpina’s parent company, the Ernst Gohner Foundation, bought back a 10-percent stake held by the now-bankrupt SwissAir group. Panalpina also bought back SwissAir’s stake in SwissGlobalCargo a capacity management joint venture, and renamed it ASB-Air.
   “Global demand for air freight declined and in some cases shifted to the sea-freight sector,” Panalpina said, commenting on its 2001 results. Panalpina carried 550,000 TEU last year, 10 percent more than in 2000, thanks largely to continuing growth in volumes on routes between Asia and Europe.
   Last year, Panalpina entered into a strategic alliance with U.S.-based transport company AIT to upgrade its door-to-door services.
   Panalpina predicted another set of good financial results for 2002.
   “Despite an indifferent economic outlook, Panalpina is thus confident that it can repeat its excellent 2001 results,” it said.
   The Panalpina Group has more than 300 branches in 74 countries, and employs around 12,000 people worldwide.4