Sea freight squeezes Panalpina’s profit
Panalpina, the Swiss based freight forwarding and logistics provider, has released its interim figures for the first half of 2003. Despite the weak European and US economies the company was able to increase its net revenues by almost 2% to CHF 2,529 m (€1,618m) compared with the same period in 2002. Removing currency fluctuations, the net revenues increased by over 14%. However operating profit (EBIT) fell by almost 10% to CHF70.4m (€44.8m).
According to management there were a number of factors behind the fall in profits. In addition to the unfavourable strengthening of the Swiss franc against the US dollar, an increase in sea freight rates squeezed Panalpina’s margins due to its inability to pass on the rises to its clients in full. However the company’s business in the Asia Pacific Rim continued to benefit from the strength of the developing economies in the region.
As far as Panlapina’s strategic development is concerned there has been no news on its potential listing as a public quoted company. Although its owners have made it clear that this is an eventual goal, the weakness of the stock markets over the last few years has led to the postponement of its flotation. However give that European shares have increased in value considerably over the last six months, a listing may be back on the cards. Likewise, Wilson Group, a large Scandinavian freight forwarder with the same ambitions, may also feel that the time is right.
