Due to growth in its air and ocean segments, Panalpina saw its gross profit rise to CHF 403 million ($450.95 million) in the third quarter, a year-over-year increase of 6 percent.
Revenue ended the quarter at CHF 1.7 billion, a decrease from the $1.72 billion generated during the same period last year. Taking the first nine months of the year into account, net revenues are up over last year’s results.
During the quarter, Panalpina’s air segment grew by 4 percent on above-average performance by the retail, healthcare, and oil and gas industries. Ocean freight volumes expanded by 8 percent compared to the third quarter of 2012. Gross profit per TEU declined by 1 percent, year over year, due to volatile carrier rates.
“With the backdrop of a continuously slow market, our results for the third quarter are in line with expectations,” Panalpina's Peter Ulber said in a statement. “We outperformed the market both in ocean freight and air freight in terms of volumes. Gross profit grew across all regions and products, albeit only moderately in air freight."
Looking ahead, Panalpina expects its full-year results in the ocean and air segments to both outperform the market. Officials predict the air market will grow by 1 percent this year, while the ocean side will see 3-percent growth.
“The economic environment remains fragile, and we don’t expect the market to be more dynamic in the last quarter of the year,” Ulber said. “We have to balance cost control with investments in our business platform. And in a market that only grows at a small pace, it is crucial that we continue to increase our customer focus.”