Second-quarter profit slumped 68 per cent to 14.6 million Swiss francs (US$13.7 million) on legal costs tied to a corruption investigation in the US and an antitrust probe in Switzerland. Sales fell to 1.36 billion Swiss francs. Panalpina cut the equivalent of 1,740 full-time jobs, or 11 per cent of its workforce, in the fi rst six months of the year.
Compared to the first quarter of 2009, air freight volume rose by three per cent and ocean freight by eight per cent although the company said that a large number of new business deals in the SME customer segment failed to compensate for the falloff in volume from large customers notably in the automotive, high tech and telecommunications sectors where the group has a major presence.
Business improved on trade routes within Asia, from Asia to Australia and the Pacific islands as well as to and from Latin America, CEO Monika Ribar said. Automotive, technology and telecom customers may fare better in the rest of this year than in the second half of 2008, she said.
“Panalpina suff ered a sharp fall in ocean and air freight volumes in nearly all trade lanes. Newly acquired businesses also failed to make up for the losses, which had a negative impact on the first-half results,†said Ribar. By contrast, freight volumes increased in the second quarter compared with the first three months.
“In addition, thanks to our consistently implemented cost management programme, coupled with an excellent cash flow position and a forward-looking sales strategy, we are well-positioned to master the challenges of the global business environment, which is expected to remain difficult in the second half-year,†she added.
Compared with the first half of 2008, air freight fell by 28 per cent in the first half of 2009 and ocean freight by 21 per cent. In the last period Panalpina has been focussed on reducing costs which included shedding nearly 11 per cent of its global workforce by the end of June.
