Antitrust Penalties Push Panalpina to 2010 Loss

Panalpina boosted 2010 net revenue 20 percent from the previous year to $7.7 billion, driven by double digit growth in ocean container and air freight traffic.

But the Swiss forwarder slumped to a $28 million loss from an $11.2 million profit in 2009 on one-off charges related to U.S. anti-trust fines.

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A Matter of Trust

The group moved into the black in the final quarter of 2010, booking a profit of $35.5 million against a year earlier loss of $11.9 million.

Gross profit grew 7.5 percent in 2010 to $1.9 billion but earnings before interest, tax, depreciation and amortization shrunk to $67.4 million from $86 million.

"We succeeded in taking full advantage of strong global economic growth, raising our core activity volumes at rates that outperformed market averages," said CEO Monika Ribar.

"With our gains in market share and robust growth in the adjusted margins, we have solidified our position in the industry," Ribar said.

Panalpina boosted air freight volume 22 percent to 892,000 tons, outpacing market growth of 19 percent.

Ocean container traffic jumped 13 percent to 1.241 million 20-foot equivalent units, beating market growth of 11 percent.

All trade lanes benefited from the strong gains in ocean and air freight, with some routes recording volume growth in excess of 50 percent.

The Asia-Pacific region registered the biggest growth in gross profit of 20 percent to $322 million while profit in Latin America increased 8 percent to $168.5 million.

Europe, the Middle East and Africa contributed more than half of group profit at $821 million, up 4 percent on 2009.

"We anticipate single digit market growth for both air and ocean freight this year, and seek to win further shares of the market," Ribar said.

"We will further expand our global sales organization and continue to invest in growth markets such as China, India and Brazil, as well as in selected industries."

"This will include the evaluation of acquisition opportunities," Ribar said.

-- Contact Bruce Barnard at brucebarnard47@hotmail.com.