Panalpina profits tumble, 10% jobs cut

Panalpina achieved a net income of CHF113.8 million in 2008. Compared to CHF 210.6 million in the previous year, declining a staggering 46% due mainly to one-off charges for withdrawing from Nigeria.
Gross revenue gained just 0.5 percent to CHF 10 billion.

In spite of all this, the company was able to increase free cash flow by 29.2%. largely thanks to the strict management of net working capital and reduced investments in comparison with the previous year.
The cost-cutting program implemented already in February 2008 is to be continued into 2009. In order to prepare the company for the difficult market conditions ahead, the program will involve the reduction of between 1,400 and 1,600 jobs worldwide.

Taking into account all challenges with which we were confronted in 2008, I am satisfied with these results. We were able to gain market share in the air freight and ocean freight sectors and won new contracts in all segments. These results underscore the success of Panalpina's asset-light business model, which enables us to react quickly to the market and to the individual requirements of our customers, commented CEO Monika Ribar.

Especially in the current economic conditions, it makes even more sense to provide services for the most part without capital-intensive infrastructure of our own, but based on state-of-the art IT systems and through the professional management of first-class sub-contractors. <Korea Shipping Gazette>