BASEL, Switz.–Panalpina reported it has kept profitability stable in the first half of 2015 despite a challenging environment.
“We succeeded in keeping profitability stable in the first six months of the year despite a soft air and ocean freight market. We are doing an increasingly better job of getting our costs under control. Currency adjusted, profitability was higher than last year,” says Panalpina CEO Peter Ulber. “In the first six months of the year, we grew volumes in line with the market in Ocean Freight but fell behind market growth in Air Freight, where we clearly felt the headwind in the energy sector. Overall, global transport demand softened considerably in the second quarter of the year.”
“Our main focus remains on cost control and improving productivity. We have come a long way in cutting losses and transforming our operations, but we still see a lot of upside potential,” says Ulber. “Despite the headwind in the energy sector, we are confident that we can recover lost ground in Air Freight during the second half of the year. Our pipeline looks promising,” he said.
Panalpina expects the slow growth of the air and ocean freight markets to continue throughout 2015.