International freight forwarding and logistics company Panalpina increased its operating result and profit in the first quarter of 2015. Consolidated profit increased 10 per cent to CHF 19.6 million while EBIT increased 3 per cent (adjusted at constant currency rates: +12 per cent) to CHF 25.3 million, helped by a positive quarter in logistics. Year-on-year, EBIT and conversion rate increased in ocean freight as volumes grew by 5 per cent, but decreased in air freight where volumes only grew slightly by 1 per cent.

Panalpina’s air freight volumes grew 1 per cent in the first quarter, against an estimated market growth of 3 to 4 per cent, mainly caused by lower volumes in the automotive sector. Gross profit per ton decreased 4 per cent to CHF 722 (Q1 2014: CHF 754); as a result, gross profit reached CHF 148.0 million (Q1 2014: CHF 153.7 million). Air freight achieved an EBIT of CHF 19.6 million (Q1 2014: CHF 26.0 million), and the EBIT-to-gross-profit margin for the first quarter decreased to 13.2 per cent (Q1 2014: 16.9 per cent).

Panalpina CEO Peter Ulber said: “In the first three months of the year, earnings were up, despite headwinds from a strong Swiss franc and a slowdown in volume growth in air freight. Group EBIT and EBIT-to-gross-profit margin increased both year-on-year and quarter-on-quarter. Slightly better results in ocean freight and profitability in logistics contributed to a decent first quarter.”