Swiss based Panalpina has become the latest forwarder to announce a strong set of figures for the first quarter of 2007, with profits doubling year-on-year. Net revenue growth was held back by softer rates and higher fuel charges to grow by just 6.6% to CHF1,954m (€1,185m). However EBITDA grew by 73.4% to CHF87m (€52.7m) and EBIT by an extraordinary 93.9% at CHF74.2m (€45m).

All segments of Panalpina's business performed well. Despite weakening on some routes, both sea freight and airfreight increased their volumes by 13%. The Supply Chain Management business did even better with a 24% leap in gross profit driven by strong demand in oil and gas as well as in sectors such as high tech.

Another reason for the quality of the results was the improvement in profit margins. EBITDA margin is now 20.1%, up from 13.8% in first quarter 2006. In part this is due to lower costs internally and higher productivity as well having turned around its business in North America. What is just as remarkable is that Panalpina is indicating that this performance could be sustained through the year, effectively leading to a doubling of annual profits.

"Our solid performance and continued efforts to further improve profitability met with a soaring demand from global markets, culminating in March to become the strongest month so far in the company's history", commented Chief Executive Monika Ribar. "These very satisfying figures, which are even above our expectations, were positively impacted by an overall growth of customer business, the full deployment of business wins already contracted in 2006 and 2007 and a very favourable development of project-related business."

The figures are especially good given that growth in the air freight market, especially out of the US, is still sluggish and volumes across the Pacific are not as buoyant as they were. Routes such as China-Europe are showing good growth, but overall growth rates in transport appear to be moderating. It would seem that Panalpina's focus on being predominantly a 'pure-play' non-asset forwarder is paying off.