Kuehne + Nagel breaks through the 4 million TEU mark
In 2016, the Kuehne + Nagel Group once again achieved profitable growth leading to new record highs in both earnings for the year with CHF 720 million and EBIT margin at 5.6 per cent. After customs, duties and taxes, the Kuehne + Nagel Group achieved a net turnover of CHF 16,525 million in 2016, which corresponds to a decline by 1.2 per cent in comparison to the previous year. This was due to historically low rates in sea and airfreight as well as negative foreign currency effects. Gross profit, which is the better performance indicator for a logistics company than turnover, was with CHF 6,550 million 4.8 per cent higher than in the previous year. Earnings before interest and tax (EBIT) improved by CHF 68 million to CHF 918 million.
Dr. Detlef Trefzger, CEO, Kuehne + Nagel International AG: “In a market environment characterised by multiple challenges, we were successful with our focus on customer requirements, our solution-oriented approach and our balanced service portfolio. In all business units we gained market shares while further increasing overall profitability. Thanks to our portfolio of scalable industry-specific end-to-end solutions and our operational efficiency, we are well positioned for continued profitable growth, which we will accelerate by selected acquisitions.”
In 2016, the number of TEU handled by Kuehne + Nagel exceeded the 4 million mark for the first time. With a volume increase of 6.1 per cent, the Group grew twice as fast as the market. The Less-than-Container Load (LCL) volume increase and the successful development of the reefer container business are to be emphasised. Renowned customers from the pharmaceutical and healthcare industry rely on Kuehne + Nagel when it comes to handling their temperature-sensitive products.
Kuehne + Nagel was not able to fully avoid the effects of the ongoing shipping crisis, which became apparent in 2016 above all in terms of historically low freight rates and pressure on margins, as well as the weak development in the oil and gas industry. Despite productivity increases, EBIT declined by 3.1 per cent in comparison to the previous year, whereby the EBIT-to-gross profit margin (conversion rate) could be maintained at an industry leading high level with 31.4 per cent.
Airfreight delivered a very pleasing performance. In a volatile international airfreight market with growth only picking up in the fourth quarter, Kuehne + Nagel increased tonnage by 4.3 per cent to 1,304,000 tons, therewith expanding its position as number 2 among the global airfreight providers. Its focus on industry-specific airfreight solutions such as KN EngineChain, a specialised service package for production and spare parts logistics as well as the maintenance of aircraft engines, was a key success factor. Kuehne + Nagel’s leading solution for temperature-sensitive goods, pharmaceutical or perishable products, generated significant new business.
In Overland, Kuehne + Nagel increased the net turnover in 2016 by 11.9 per cent due to the systematic expansion of the overland activities within and outside Europe. Following the integration of the United States overland transport provider ReTrans, which has been part of the Group since 2015, Kuehne + Nagel customers in North America benefit from intermodal transport services. Overland activities were increasingly integrated into industry solutions provided by the other business units.
In Contract Logistics, focusing on specialised end-to-end solutions for industries such as automotive, e-commerce, high-tech, consumer goods, aerospace, pharmaceuticals and healthcare again resulted in new business wins with a subsequent rise in net turnover by 5.7 per cent in constant currencies. In 2016, more than 100 new logistics projects were implemented for customers; the Group now managing more than 10 million square metres of warehousing and logistics space.
With over 70,000 employees at more than 1,300 locations in over 100 countries, the Kuehne + Nagel Group is one of the world’s leading logistics companies. The emphases are on seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based integrated logistics solutions.
