Panalpina reports 2009 EBIT down 84.5%

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Air and sea freight volumes declined 19.0% and 14.0% respectively,Panalpina transported lower volumes and generated a smaller gross profit in 2009

Panalpina transported lower volumes and generated a smaller gross profit in 2009, compared to 2008. Global trade volumes dropped at an unprecedented rate, affecting most core markets. Overall, Panalpina transported 731,000 tonnes of air freight (-19.0% compared to 2008) and 1,103,000 TEUs (Twenty foot equivalent unit) in sea freight (-14.0% year on year).

Net forwarding revenue of CHF5,958.0 million, decreased by 32.9% year on year, and gross profit declined 20.9% (16.9% in local currencies), to CHF1,377.0 million.. Apart from lower transport volumes and the very volatile rate-development, gross profit was in addition negatively affected in the EMEA and North America regions by the full-year impact of the discontinuation of the Nigerian business, amounting to approximately CHF42.0 million.

The Group’s EBITDA decreased, from CHF241.0 million in 2008, to CHF80.0 million in 2009. The development of EBITDA was positively impacted by lower personnel expenses, which decreased from CHF992.0 million in 2008, to CHF879.0 million in 2009. The substantial savings in personnel expenses mainly came from the cost-reduction programme implemented at the end of the first quarter in reaction to the sharp volume declines, which resulted in the Company reducing its workforce by around 12.0%.

Other operating expenses dropped, from CHF509.0 million in 2008, to CHF419.0 million in 2009. Figures for the fiscal years 2009 and 2008 comprise expenses related to the ongoing FCPA and anti-trust investigations. Legal and consulting fees negatively impacted EBITDA by CHF45.0 million in 2008 and by CHF55.0 million in 2009.

EBIT plummeted 84.5%, from CHF193.0 million in 2008, to CHF30.0 million in 2009. Consolidated profit dropped 91.2%, from CHF114.0 million in 2008, to CHF10.0 million in 2009.

Although overall visibility for 2010 remains low, Panalpina expects a moderate recovery in both air and sea freight, with mid single-digit growth rates.

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