Panalpina World Transport
Basel, Switzerland
SWX:  PWTN
In the U.S.
Panalpina Inc.
Morristown, NJ
Lucas Kuehner, Managing Director USA
973-683-9000
www.panalpina.com

3PL Turnover:

$2.7b Americas ($9.4b Global)

Service Area:

Tier 1 – Global Supply Chain Manager – Freight Forwarding

3PL Assets:

15,305 employees
242 warehouses

Information Systems:

Good
Emphasis is on internet native SCM

Services:

Air and ocean freight forwarding, supply chain management

Industry Focus/Key Customers:

Automotive, chemicals, healthcare, high-tech, oil and gas, retail/fashion, telecommunications
Key Customers:  Not disclosed

Armstrong & Associates’ Evaluation:

Panalpina is a top ten freight forwarder. It is the third largest in air freight and fourth largest in ocean freight. It handles 1,233,000 TEUs per year (a 13.7% increase from last year), 947,000 tonnes of airfreight (an 8.4% increase from last year), and about 1 million tons of non-containerized break bulk cargo. It has 242 sub-contracted warehouses in 150 countries and is consistently profitable. About 15% of its revenues are derived from supply chain management. In supply chain management, the Group further improved performance by accelerating its net forwarding revenue growth from 4.7% to 6.6%. The overall 12.3% purely organic increase in Panalpina’s net forwarding revenue was contributed to by all regions, except North America, which remained at the same level while doubling its EBIT. Although hampered by freight rate increases, gross profit was up 13.4% with significant growth in all three core activities. EBITDA margins run 19.7%. The gross profit margin (net revenue) runs 20-21%. EBIT margin on gross profit is 16.6%. Free cash flow was $138 million for 2007. Of its net forwarding revenue, 12.9% is generated in Asia/Pacific, 19.4% in North America, 58.3% in Europe/Africa/Middle East/CIS and 9.4% in Latin/South America. North American operations are growing fast. In 2005, Panalpina underwent an IPO which was successful. A key strategic relationship formed with NYK’s Yusen operation. Panalpina concentrates on six verticals: Telecommunications, High-Tech, Automotive, Healthcare, Retail/Fashion, and Oil/Gas. Telecom growth was major in 2007. The Oil/Gas operations are primarily in project logistics. Increases were recorded in all customer industry verticals.