Panalpina increases quarterly profits 30-fold

SPURRED by an annual growth of 24 per cent in air freight shipments, together with a 22 per cent rise in sea freight, Panalpina Group has posted a consolidated profit of CHF1.2 million (US$1.11 million) for the first quarter of 2010, a 30-fold increase over the same period last year.

Gross profit, which declined 13 per cent year on year, nevertheless increased on a quarterly basis by five per cent, largely on the back of improved operating conditions and more stringent cost-saving measures.

"We are glad to see the gradual recovery of the global markets continuing and our freight volumes picking up," said CEO Monika Ribar. "We are well on track with the implementation of our procurement and sales initiatives, have managed to keep our costs at low levels and have significantly increased productivity. Our volumes are starting to outpace the market again, and I am confident that we will also see profitability improving in coming months."

Regarding the on-going US Department of Justice and US Securities and Exchange Commission investigations into its alleged breach of the Foreign Corrupt Practices Act in connection with facilitation fees to Nigerian customs officials, the company has already set aside CHF120 million to cover legal expenses and any fines that may imposed as a result.

Panalpina also noted that it had only been moderately impacted by the recent closure of European air space. The company, through its controlled air freight network, was the first to launch a cargo aircraft into Europe after the closure period.

(Source: www.schednet.com)