Panalpina`s quarterly gross profit rises 13pc to US$374 million

SWISS-based Panalpina posted a 13 per cent third quarter year on year gross profit increase to CHF382 million (US$374 million), attributed to a double digit growth in forwarding volumes of 27 per cent in air and 16 per cent in ocean freight.

The company originated regular air freight services connecting Luxembourg with the new Dubai World Central-Al Maktoum International Airport in the third quarter.


Panalpina also introduced a new express service to Brazil with an airport-to-airport transit time of 30 hours from Hong Kong via Huntsville, Alabama to Sao Paulo to cater for the growing demand for Asia-Brazil trades.


Also, the US antitrust case was settled in the third quarter and Panalpina agreed to pay a fine of US$12 million to the US authorities.


Besides, the US Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) FCPA-related investigations have been completed and finalisation of the settlement formalities is expected by the end of the year, said the company`s statement.


Both cases in the US are covered by the CHF128 million provision which was charged to the 2010 second quarter financial statements. This amount does not include any provisions for ongoing anti-trust investigations in Switzerland, the EU, New Zealand and Brazil as Panalpina is unable to predict the amount of any possible fine.


A statement of objections was received from EU competition authorities in February 2010 and Panalpina submitted a written response at the end of April. An oral hearing before the commission`s case team took place in July and no decision is expected before mid-2011, said the company`s statement.


Looking to the fourth quarter, CEO Monika Ribar said she is expecting a decline of volume growth rates and does not see there is a peak season like the past.


"The peak season for air freight will only be moderate and in ocean freight, the peak season is already over with restocking having taken place early as businesses attempted to avoid shortages and anticipated peak season rates," she said.