Panalpina’s 1st quarter profit down 40%

Panalpina’s 1st quarter profit down 40% Swiss forwarding and logistics group Panalpina’s first quarter net earnings slumped 39.7 percent to CHF 32.2 million ($33 million) from CHF 53.4 million in the same period a year ago.
   The Basel-based company said its operating result for the quarter was negatively impacted by CHF 20.6 million ($21 million) as a consequence of the situation in Nigeria, where the company has scaled back services following a bribery investigation.
   Panalpina’s quarterly earnings before interest and tax (EBIT) decreased 36.9 percent to CHF 46.8 million ($48 million) while net forwarding revenue improved 9.2 percent to CHF 2.13 billion ($2.16 billion).
   Chief Executive Monika Ribar said the latest quarter failed to match the exceptional performance of the 2007 first quarter, which included business wins in the volatile project and supply chain management segments and above average air freight volume increases. “The quarter result is comparable to first quarter results of other years,” said Ribar. 'Operating results of 2008 are therefore from this perspective satisfying.'
   Panalpina’s net air freight turnover in the first three months of 2008 grew 9.1 percent to CHF 1 billion ($1.02 billion) with volumes up 4.4 percent. The company’s revenue from ocean freight revenue went up 15.2 percent to CHF 834 million ($843 million) as volumes increased 14 percent. Supply chain management sales declined 4.9 percent to CHF 294 million ($297 million).
   On a regional basis, Panalpina’s net forwarding revenue was:
   ' Europe/Africa/Middle East/CIS: CHF 1.24 billion ($1.25 billion), up 8.5 percent.
   ' North America: CHF 412 million ($417 million), up 2.7 percent.
   ' Asia/Pacific: CHF 264 million ($267 million), up 9.1 percent.
   ' Central and South America: CHF 223 million ($226 million), up 28.2 percent.
   Panalpina said it is confident that it will achieve its 2008 annual targets and that the reorganization in Nigeria is expected to be completed in the second half of this year.