Panalpina increases group profitability [Forwarder]
In the first nine months of 2018, international freight forwarding and logistics company Panalpina increased group profitability compared to the same period of last year. From January to September, gross profit increased from CHF 1,024.8 million to CHF 1,116.2 million.Year-on-year, Panalpina’s EBIT increased from CHF 72.1 million to CHF 83.2 million and the consolidated profit increased from CHF 48.4 million to CHF 51.0 million.
“In a year that so far has been characterized by strained international trade relations, we have increased profitability of the group compared to the first nine months of 2017,” says Panalpina CEO Stefan Karlen. “The macroeconomic uncertainties of the third quarter resulted in air and ocean freight markets that were not as strong as predicted. We saw a market where ocean freight peak season was weaker than anticipated. The air freight rates went up, which impacted our margins as expected. In all, we have stood our ground in a very volatile environment.”
Panalpina Group: Results for the first nine months of 2018
(CHF million) YTD 2018 YTD 2017
Net forwarding revenue 4,442.5 4,065.5
Gross profit 1,116.2 1,024.8
EBITDA 208.5 103.9
EBIT 83.2 72.1
Consolidated profit 51.0 48.4
Group gross profit increased 9% to CHF 1,116.2 million in the first nine months of 2018 (YTD 2017: CHF 1,024.8 million), while total operating expenses decreased from CHF 920.9 million to CHF 907.8 million. EBIT and consolidated profit increased year-on-year, EBIT reached CHF 83.2 million compared to CHF 72.1 million a year before and the EBIT-to-gross-profit margin stood at 7.5% up from 7.0%. The consolidated profit increased from CHF 48.4 million to CHF 51.0 million.
Panalpina’s Air Freight volumes increased 4% in the first nine months of 2018, in line with estimated market growth of 4%. Compared to the same period of last year, gross profit per ton increased 12% to CHF 705 (YTD 2017: CHF 632), resulting in a gross profit of CHF 530.1 million (YTD 2017: CHF 456.0 million). EBIT in Air Freight increased from CHF 69.4 million to CHF 80.2 million. The EBIT-to-gross-profit margin for the first nine months of 2018 came in at 15.1% compared to 15.2% a year before.
Panalpina’s Ocean Freight volumes from January to September 2018 decreased by 2% year-on-year, compared to an estimated market growth of approximately 3%. Gross profit per TEU increased 5% to CHF 296 (YTD 2017: CHF 283), resulting in a gross profit of CHF 331.9 million (YTD 2017: CHF 323.4 million). For the first nine months, Ocean Freight posted an EBIT loss of CHF 5.3 million, comparable with the loss of CHF 5.5 million in 2017. However, in the last two quarters, Ocean Freight was at break-even.
In Logistics, gross profit increased 4% to CHF 254.2 million year-on-year (YTD 2017: CHF 245.4 million). Logistics posted an EBIT of CHF 8.3 million for the first nine months of 2018, compared to CHF 8.1 million for the same period last year.
“Due to macroeconomic and political uncertainties, it is challenging to accurately predict the dynamics of the the air freight peak season and the impact on rates and volumes this year, but we have prepared meticulously, securing capacity for our customers and ensuring readiness on the ground at strategic airports. In ocean freight, we expect fairly strong flows into the USA, but otherwise moderate market growth globally and our focus remains on unit profitability improvement,” says Karlen. “The volatile freight forwarding environment is a constant reminder that we need to do everything in our control to continue to build an organization that is fit for sustainable, profitable growth.”
Posted at 22:02 パーマリンク
Kuehne + Nagel Group | 9-Months 2018 Results [Forwarder]
Market share gains through strong volume growth
Significant increase in turnover and gross profit
EBIT and earnings for the period well up on previous year
Schindellegi / CH, October 18, 2018 – The Kuehne + Nagel Group significantly increased EBIT and earnings for the period in the first nine months of 2018. The conversion rate (EBIT-to-gross-profit ratio) remains at a high level. The company achieved strong volume growth, with a particularly dynamic development in seafreight.
Kuehne + Nagel Group
January to September 2018 2017 Variance
Net turnover 15,361 13,525 +13.6%
Gross profit 5,736 5,136 +11.7%
Operational result (EBITDA) 906 840 +7.9%
EBIT 745 685 +8.8%
Earnings for the period 580 540 +7.4%
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “Kuehne + Nagel has continued its dynamic performance from the first half of the year into the third quarter and achieved a very positive result for the first nine months of 2018. The performance in the business units seafreight, airfreight and overland is remarkable. In contract logistics, results are as expected negatively affected by investments in the operation platform, which have been realised according to plan in this year. Based on the very good results of the first nine months, we expect this year to close successfully.”
In seafreight, Kuehne + Nagel increased the volume by 8.8 percent and thus grew twice as fast as market. In the first nine months of the year the company shipped 3.519 million standard containers (TEU), 284,000 more than in the same period of the previous year. A substantial amount of new business was gained with digital end-to-end solutions, with high demand on the market for the two digital platforms KN ESP and SeaExplorer, launched in 2018. EBIT for the first nine months of the year was up 5.2 percent at CHF 324 million with stable margins. The conversion rate of 29.0 percent remains a leading mark in the industry.
Airfreight stayed en route for success in the first nine months of 2018 and continued its strong performance from the previous quarters. Tonnage increased by 16.0 percent to 1,302 million tonnes, therewith well above market growth with major contributions from industry-specific end-to-end solutions. With the recent acquisition of Panatlantic’s business, a perishables airfreight specialist in Ecuador, Kuehne + Nagel continues to strengthen its network in this segment after successfully completing the integration of CFI Commodity Forwarders, the leading perishables provider in the USA. EBIT was up 19.4 percent against the same period of the previous year at CHF 271 million. The conversion rate remained high at 30.3 percent.
Success continued in Kuehne + Nagel overland with a net turnover growth of 16.2 percent compared with the same period of the previous year whilst gross profit increased by 15.6 percent. EBIT improved 58.3 percent over the previous year to CHF 57 million. This strong performance was driven by the US intermodal business, benefiting from the increase in oil prices, and dynamic business development in Europe, particularly in Germany and the UK.
Growth in contract logistics was well above the market with net turnover increasing by 10.6 percent and gross profit by 10.7 percent. Business performance developed well in North America, Asia and Germany and with e-commerce fulfilment solutions. Results are negatively affected by investments in the operation platform, which have been made according to plan in this year. At CHF 93 million EBIT was as expected below the previous year’s level. Key milestones in contract logistics were reached with the successful launch of a new digital warehouse management system and leading digital end-to-end solutions. Furthermore, Kuehne + Nagel agreed on the acquisition of a Chinese automotive logistics group and a local Indonesian logistics company.
Posted at 21:21 パーマリンク
New sustainability pact between Panalpina and CMA CGM [Forwarder]
Panalpina, the world’s fourth biggest ocean freight forwarder by transport volumes, and CMA CGM, one of the world’s leading shipping groups, have signed a sustainability agreement aimed at reducing their respective carbon emissions by 2025. As of 2020, newbuild LNG-powered mega-vessels with a capacity of 22,000 twenty-foot containers (TEUs) will help achieve the environmental goals.
Aiming at responsible development in ocean freight, Panalpina and CMA CGM have signed a sustainability agreement for maritime transport.
“Partnering with strategic partners such as CMA CGM that are technology driven and share a similar vision of sustainability, and using them to transport our customers’ cargo will help us achieve our ambitious sustainability goals,” says Lindsay Zingg, Panalpina’s global head of quality, health, safety and environment (QHSE). Panalpina is one of only 140 companies globally with approved Science Based Targets where the company – amongst other targets – commits to reduce CO2 emissions from subcontracted transportation by 22 percent by 2025 (baseline 2013).
CMA CGM, one of the world’s largest box ship carriers, aims to reduce carbon emissions per standard container (TEU) transported by 30 percent by 2025 (baseline 2015). “We are determined to reach that goal by investing in highly fuel-efficient vessels, making constant technical improvements, and retrofitting our fleet,” says Julien Topenot, head of environment and sustainability at CMA CGM.
LNG-powered mega-vessels to reduce carbon emissions
Marseilles-based CMA CGM, which recently celebrated its 40th anniversary, was the first shipping company to order container ships propelled by liquefied natural gas (LNG). Nine LNG-powered mega-vessels or ULCVs (Ultra Large Container Vessels) with a capacity of 22,000 TEUs are scheduled for delivery in 2020. “Compared to current fuel-powered vessels, our new LNG vessels will enable a reduction of up to 25 percent in CO2. They will also generate 99% less sulphur emissions, 99% less fine particles and 85% less nitrogen oxides emissions,” explains Topenot.
“We are already using CMA CGM’s most efficient and environmentally-friendly services. With this new agreement, both Panalpina and CMA CGM reinforce their commitment to sustainability,” adds Zingg.
In 2017, Panalpina transported 1.5 million TEUs, making it the fourth biggest ocean freight forwarder in the world.
In the same year, with a fleet of approximately 500 vessels including energy-efficient ships such as the Antoine de Saint-Exupéry and more than 200 services that cover all of the world’s seas, CMA CGM transported 19 million TEUs.
For the environment and more
The scope of the sustainability agreement between CMA CGM and Panalpina goes beyond the reduction of the environmental impact via eco-friendly transport solutions. The companies have committed to collaborate, innovate and improve in four key areas: the environment, ethics and compliance, social responsibility, and community. Initiatives where CMA GGM and Panalpina intend to work more closely together include occupational health and safety programs, local sourcing as well as emergency relief and support.
Notes to the editor:
Since January 2015, Panalpina automatically calculates all customers’ emissions based on the reporting standard EN 16258. In December 2015, Panalpina committed to the Science Based Target Initiative, setting approved science-based targets and thus agreeing to actively manage emissions through reduced energy use and stakeholder engagement. Panalpina was one of the first companies globally to have such targets approved. They are in line with the views of the Intergovernmental Panel on Climate Change (IPCC) to keep global warming below a dangerous threshold. According to this panel of scientists, global greenhouse gas emissions must be cut by up to 70% by 2050 to limit global warming to 2 °C and avert irreversible climate change. In a new report published on October 8, 2018, the IPCC highlighted a number of climate change impacts that could be avoided by further limiting global warming to 1.5 °C instead of only 2 °C.
Following the International Maritime Organization’s historic decision in April of 2018, aimed at reducing the total annual greenhouse gas emissions by at least 50% by 2050 compared to 2008, CMA CGM reaffirmed its commitment towards the protection of the environment with the new 30-percent reduction goal by 2025. Prior to this, the CMA CGM Group had already developed several innovations (fleet and engine optimization, creation of Fleet Centers, etc.), which led to a reduction of its carbon emissions by 50% between 2005 and 2015 and by 10% in 2017 compared to the previous year.
About CMA CGM
CMA CGM is a leading worldwide shipping group with a young and diversified fleet of approximately 500 vessels. Its ships call 420 of the world’s 521 commercial ports. In 2017, they carried 18.95 million TEUs (twenty-foot equivalent units). Headed by Rodolphe Saadé, the CMA CGM Group is present in more than 160 countries with 755 agencies and more than 30,000 employees worldwide. 4,500 employees work in France, of which 2,400 at the Group’s head office, the CMA CGM Tower in Marseilles, the city where the company was founded in 1978 and today is the largest private employer.
Posted at 20:08 パーマリンク
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