Panalpina’s profits tumble in Q1 2017 despite higher volumes

The international freight forwarder and third-party logistics provider recorded a boost in volumes for the quarter from a year prior as margins remained under pressure.    Panalpina recorded a consolidated profit of 12.4 million Swiss francs (U.S. $12.4 million) for the first quarter of 2017, falling 28.6 percent from the same period in 2016, according to the company’s most recent financial statements.
   The international freight forwarder and third-party logistics provider’s net forwarding revenues for the quarter totaled CHF 1.28 billion, falling 2.3 percent year-over-year.
   During the quarter, Panalpina experienced a boost in volumes compared to a year prior as margins remained under pressure.
   In the airfreight segment, volumes grew 8 percent from the first quarter of 2016, beating the estimated overall market growth of just above 6 percent. Panalpina said its growth in airfreight volumes was primarily fueled by the Far East trade lanes. The segment’s gross profit for the quarter totaled CHF 144.7 million, a decline of 2.6 percent year-over-year.
   Meanwhile, in the ocean freight segment, Panalpina’s volumes grew 7 percent from the first quarter of 2016, outpacing the overall market growth of around 4 percent. Panalpina attributed its volumes growth in the segment to the transatlantic and Far East trade lanes. The segment’s gross profit for the quarter totaled CHF 105.5 million, falling 10.6 percent year-over-year.
   The logistics segment posted a gross profit of CHF 82.5 million, falling 16 percent year-over-year, resulting from Panalpina’s exit from more underperforming sites, the company said.
   Based out of Basel, Switzerland, Panalpina has about 500 offices across 70 countries, working with partner companies in over 90 countries. Panalpina employs approximately 14,500 people worldwide.