On track for a record year due to unabated growth and strong profitability in the first nine months
The global transport and logistics group Panalpina persistently continues its solid performance and posts excellent results for the first nine months of 2006. Fueled by favorable world market conditions, substantial new business wins and successful cost management, both Ebitda, Ebit and net earnings have already reached the full-year results level of 2005.
Monika Ribar, Chief Executive Officer of Panalpina, comments: "We are very satisfied with the development of the first nine months of 2006, not only in view of these convincing figures as such, but also because we manage to keep delivering what we forecast. This consistent performance, which is even above our recently raised targets, proves the soundness of our business model and the strong commitment of our staff, which justifies our positive outlook regarding the full-year results."
Panalpina Group: Results for the first nine months of 2006
in million CHF Q1-Q3 2006 Q1-Q3 2005 + / -
Gross revenue 6 773.6 5 917.7 + 14.5%
Net forwarding revenue 5 636.3 4 967.3 + 13.5%
Contribution margin (gross profit) 1 162.3 1 022.8 + 13.6%
Ebitda 204.5 143.5 + 42.5 %
Ebit 168.6 107.6 + 56.7%
Net earnings 119.1 82.6 + 44.2%
All regions showing a strong performance
Top-line growth continued throughout all of Panalpina's four reporting regions with net forwarding revenue – in comparison to the previous year's period – increasing by 13.5% in Europe / Africa / Middle East / CIS, by 16.0% in Asia / Pacific, by 16.4% in North America and by 3.8% in Central and South America. The restructuring in North America is progressing very well and puts this region ahead of the break-even target for the full year. Profitability, also, was generally strong in all regions despite investments to further strengthen the organizations in China, North and West Africa as well as in Central Asia. Latin America managed to more than double its profitability and increased gross profit by 11.1% despite adverse currency impacts and a temporary slowdown in project business.
Further consistent growth in all key activities
All of Panalpina's three key activities grew both in terms of revenue and tonnage. In air freight net forwarding revenue went up 9.7%, in ocean freight 18.1% and in supply chain management 14.7%. The transported volumes and tonnages once again outperformed the respective market growth rates in air and ocean freight. The ongoing global trend to outsource industry processes manifested in a continued strong customer demand for logistics solutions. Panalpina successfully mets such demands based on its asset-light approach in supply chain management services.
Additional and new business in all industry verticals
Throughout all of the Group's strategic key industries – namely the oil and gas, the automotive, the healthcare, the retail and fashion, and the hi-tech sectors – Panalpina contracted substantial new business and further enlarged its customer base. Once more, an excellent performance was achieved in the booming supply chain (up-stream) services for the global oil and gas industry.
Outlook on a record year
In view of the facts that the traditionally strongest quarter is still ahead, that the globalization-driven world economy shows no signs of weakening and that the forecasts for air freight, ocean freight and logistics demands remain positive, Panalpina is confident to meet its targets for the full year results 2006. With the recent enlargement of the Executive Board, the management team is in an excellent position to continue to lead the Group to a further successful future development.
The Panalpina Group
The Panalpina Group is one of the world’s leading suppliers of forwarding and logistics services, specializing in intercontinental air freight and ocean freight shipments and associated supply chain management solutions. Thanks to its in-depth industry know-how and state-of-the-art IT systems, Panalpina provides globally integrated door-to-door forwarding solutions tailored to its customers’ individual needs. The Panalpina Group operates a close-knit network with some 500 branches in more than 80 countries. In a further 60 countries, it cooperates closely with selected partner companies. Panalpina employs some 14,000 people worldwide.