Panalpina Annual Report 2011

10
Report of the Executive Board
in distinctly higher fuel and bunker surcharges (essentially
also items with a pass-through character) which the Group
invoiced to its customers.
Influenced by these developments and coupled with lower
volumes, but improved pricing discipline per file handled,
as described in the preceding paragraph, the Group’s NFR
generated with Air Freight decreased by 6 % to CHF 3,281
million. In the Ocean Freight division, NFR saw the biggest
impact from falling freight rates and decreased by 17 % to
CHF 2,313 million, despite an expansion of volumes. In the
third product division, Logistics, NFR saw an increase of
2 % to CHF 906 million, which was driven by an expansion
of business activities particularly in distribution, valueadded
logistics services as well as overland.
In 2011, the Panalpina Group generated 50 % of its net forwarding
revenue with Air Freight, 36 % with Ocean Freight
and 14 % with Logistics.
Net forwarding revenue per product division
2011 2010
in million CHF
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Air Freight
Ocean Freight
Logistics
3,281
3,503
Air Freight Ocean Freight Logistics
Net forwarding revenue per product division (2011)
Panalpina Annual Report 2011
2,313
2,771
36%
14%
906
50%
890
Gross profit (GP)
Gross profit, a better measure of actual sales performance
than net forwarding revenue in the forwarding industry,
remained essentially flat at CHF 1,477 million in 2011 (2010:
CHF 1,480 million). Organically (ie, in local currencies),
however, GP increased by 12 %.
With respect to regional performance, Europe, Middle
East, Africa and CIS is also the most important region for
Panalpina in terms of gross profit generation, representing
approximately half of the Group’s gross profit. In 2011,
gross profit generated in the region increased 6 % in local
currencies, supported by higher freight volumes on all
major export trade lanes. Translated into Swiss francs, GP
in this region decreased by 4 % to CHF 731 million.
In North America, gross profit translated into Swiss francs
took a major hit due to the weak US dollar, but nevertheless
grew by 2 % to CHF 271 million. In local currencies, gross
profit even grew by 19 %, which is a reflection of new business
generated in various industry verticals, higher volumes
handled on transatlantic routes and strong growth in
exports to Central and South America.
Asia Pacific and Central and South America recorded
similarly strong increases in GP, which management attributes
to the relatively better economic development of
these regions in 2011, which manifested itself in strong
intraregional and import-related trade flows in and between
these parts of the world. In Asia Pacific, gross profit rose
5 % (+ 18 % in local currencies) to a record CHF 313 million,
making this region the Group’s second largest in terms of
GP, while gross profit in Central and South America
increased 4 % (+ 19 % in local currencies) to a total of CHF
162 million.
In 2011, the Panalpina Group generated 50 % of its gross
profit in Europe, Middle East, Africa and CIS, 21 % in Asia
Pacific, 18 % in North America and 11 % in Central and
South America.
Gross profit per region
2011 2010
in million CHF
800
600
400
200
0
731
760
Europe, Middle East,
Africa and CIS
271
266
North
America
162
156
Central and
South America
313
298
Asia Pacific