Panalpina suffers nine-month profit loss

Asia - Panalpina has not been spared the effects of the global economic slowdown, registering some 25% fall in earnings before interest and tax.

The company however managed to generate respectable growth amid a harsh economic environment, reporting some net forwarding revenue increase of 6.9% on year to CHF 6,719.3 million (US$ ). Gross profit on the other hand fell by 3.4% while earnings before interest and tax (EBIT) fell by 25.4%.

The company said operating results were negatively impacted by a one-time expense from the company's withdrawal from Nigeria totalling CHF 77 million and resulting in a EBITDA (earnings before interest, taxes, depreciation and amortisation) of 25.7%.

Panalpina's business continued to grow strongly in most regions, including in Asia Pacific where net forwarding revenue increased by 14.8%. The company also improved its gross profit in the region by 3.5% in the region.

The company believes growth in key markets for the last quarter will slow, impacting transport volumes. Because of the wider economic situation, it predicts 2008 targets to be "neutral or slightly positive gross profit growth" and declined guidance for 2009.

"The current market situation is challenging us to make ourselves even more adaptable and efficient," CEO Monika Ribar said. "With our asset-light strategy and global network, our focus on global supply chain management and a strict cost-controlling programme that has been in place since February 2008 and will be continued, we are well positioned for the challenges to come."