Panalpina: Volume Growth in Q1 2010

The Panalpina Group reports strong volume growth in both air (+24 percent) and ocean freight (+22 percent) in the first quarter of 2010. Gross profit declined by 13 percent year-on-year but increased by five percent quarter-on-quarter. Costs were kept at low levels. Profitability per unit of cargo was still under pressure but has been improving sequentially. Settlement discussions with US authorities are nearing finalization with expected fines, other penalties and legal expenses amounting to CHF 120 million (US$110 million).

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

Panalpina, www.panalpina.com/