Panalpina profit hit by strong Swiss franc

   The global logistics and freight forwarding company Panalpina saw third quarter operating profit fall 9.5 percent, to roughly $50 million, on a 16.1 percent decline in revenue, to $1.8 billion.
   Year-to-date, Panalpina’s operating profit reached $152.6 million, a huge swing from the more than $30 million the company lost in the first three quarters of 2010. Revenue year-to-date has fallen 9.4 percent, to $5.5 billion.
   Panalpina said its Asia Pacific activities yielded a record gross profit in the third quarter, while the company has increased its market share in the ocean freight market via an 8 percent growth in ocean volume. Profit per TEU transported fell 18 percent against the third quarter of 2010, due to “low levels of rates and a highly competitive environment.”
   Air freight volume for the year is down 6 percent, but that gap narrowed to 3 percent in the third quarter, while the company said its focus on airfreight yield has led to a 23 percent currency-adjusted increase in profit per ton.
   Panalpina said its volumes outpaced the market, but that the strength of the Swiss franc continued to have an adverse effect on its financial performance.