Panalpina achieves 33pc profit growth in first nine months

GLOBAL freight transport and logistics group Panalpina has posted a net profit of CHF158.8 million (US$137.2 million) for the first nine months of the 2007 calendar year, representing an increase of 33.3 per cent over the same period a year ago.

A statement from the Swiss logistics giant said, "Substantial new business wins in the major strategic key industries helped to further increase market shares in all areas."

In the first nine months of the year the group's gross revenue grew 13.9 per cent year on year to CHF7,712.8 million, gross profit increased 16.4 per cent to CHF1,352.7 million, and Ebit was up 33.1 per cent to CHF224.4 million.

Contribution margin (gross profit) increased 11 per cent in Central and South America, 14 per cent in North America, 16.8 per cent in the Asia Pacific region and 18 per cent in Europe, Africa, the Middle East and the CIS.

Panalpina reported strong demand for airfreight on the Europe-Africa and in the Latin America-to-North America routes. Demand for ocean freight, it said, was especially strong on its intra-Asia and Latin America to North America routes.

As a result, the group's airfreight tonnages increased 8.7 per cent and ocean freight volumes were up 15.1 per cent. In terms of gross profit, airfreight grew 19.2 per cent, ocean freight by 8.8 per cent and supply chain management activities by 21 per cent, the statement said.

The group said this was driven in part by landing "substantial" new ocean freight contracts in the third quarter with a global telecommunications solutions provider and a leading car manufacturer, as well as major airfreight contracts with a global sports apparel manufacturer, a world-leader in mobile communication and a global player in healthcare and lifestyle technology.