UPDATE 1-Panalpina Q1 beats poll, no signs of pickup in trade

* Q1 profit fell 94 percent to 1.9 million Swiss francs

* Beats average estimate for a loss of 8 mln francs in poll

* CEO see no signs of trade picking up

* Shares rise 4.5 percent

(Adds CEO interview, analyst comment, share price)

By Katie Reid and Silke Koltrowitz

ZURICH, April 29 (Reuters) - Swiss logistics group Panalpina (PWTN.S) beat analysts' expectations with its first-quarter net profit, but has yet to see any signs of trade picking up, pointing to a gloomy outlook for the global economy.

"We don't expect to return to a boom in the near future. We hope that we are close to the bottom now, but we don't know," Chief Executive Monika Ribar told Reuters on Wednesday after the group announced its quarterly net profit tumbled to 1.9 Swiss million francs ($1.64 million).

The global slump has hit demand for logistics services as shoppers and businesses cut back on spending.

Panalpina's comments echo those of Swiss rival Kuehne & Nagel (KNIN.VX), which said earlier this month that it had yet to see any signs of a recovery in the economy. [ID:nLH477630]

Panalpina's airfreight volumes fell 28 percent, while seafreight dropped 23 percent, underperforming Kuehne & Nagel, which saw an 18 percent drop in airfreight volumes and a 13 percent fall in seafreight volumes.

Cargo traffic fell 21.4 percent in March compared to a year ago, airline industry body IATA said on Tuesday, adding that the outbreak of the swine flu virus could not have come at a worse time for the industry.

Analysts at Credit Suisse said the virus could hit freight companies like Panalpina as a result of import embargoes, lower international demand and product quarantines.

By 0857 GMT, shares had climbed 2.7 percent to 61.90 francs as investors welcomed news Panalpina had easily beaten the average estimate in a Reuters poll, which had forecast the group would swing to a loss of 8 million francs. Shares in Kuehne & Nagel were 3 percent stronger at 83.45 francs.

SHRINKING MARKET

Panalpina is aiming to shrink less than the airfreight and seafreight markets in 2009, which are seen declining by 20 percent and 10 percent, respectively, Ribar said.

However, in company presentation slides, Panalpina warned it may struggle to gain market share as business volumes fall, with its customers in the automotive and hi-tech sectors particularly hard hit by the economic slowdown.

"While Panalpina reported strong volume declines in its core activities air and ocean freight, the gross profit declined less than expected," Vontobel analyst Michael Foeth said.

"We will likely adjust our estimates slightly upward following the results. Visibility remains low, however, and the company is still not in a position to provide reasonable guidance."

The group said it was on track with its efforts to cut operating costs by 130 million francs in 2009. It has said it would slash 10 percent of its workforce and has already cut 1,000 jobs of the 1,400 to 1,600 positions it is aiming to remove.

The group's gross margin is expected to improve in the second half of the year after dropping to 3.8 percent in the quarter from 13.8 percent in the same period a year ago as the cost cuts take effect, Ribar said in the interview. ($1=1.156 Swiss Franc) (Editing by John Stonestreet)