In 2013 Kuehne + Nagel handled a total of 3.6 million TEU sea cargo

Kuehne + Nagel achieved profit-oriented growth in 2013, marked by above-average improvements in the contract logistics and airfreight segments

The Kuehne + Nagel group has returned on the road of success in the 2013 financial year. According to their own account the globally operating transport and logistics provider is back on the road to profitable growth and has increased operational EBIT by 9 per cent. At CHF 20,929 billion, turnover was slightly higher in 2013 than in the previous year, while gross profit improved by 2.7 per cent to CHF 6,257 billion. The operational result (EBITDA) increased by 4.6 per cent to CHF 962 million. Net earnings improved to CHF 607 million.

Dr. Detlef Trefzger, CEO, commented on the balance press conference: “In 2013, the Kuehne + Nagel group has fully concentrated on profitable growth. Through organisational adjustments, streamlined cost structures and a clear focus on margin improvements we achieved the goals we had set ourselves. I would like to emphasise the excellent performance in airfreight and the strong improvement of results in contract logistics. By concentrating on selective growth in seafreight, we succeeded in keeping margins stable despite high volatility of rates. The implementation of the new overland strategy also led to an improvement in profitability. Our 2013 results confirm the strength of our business model, the efficiency of our focused approach, and the value our solutions offer to customers.”

In seafreight, Kuehne + Nagel increased its market shares on the transatlantic and transpacific lanes, but did not participate in the intensive competition on the Asia-Europe traffic. Specialised solutions such as reefer container and LCL activities were successfully expanded due to growing demand. In 2013 Kuehne + Nagel handled a total of 3.6 million TEU, an increase of 3 per cent compared to the previous year.

In airfreight the company managed to increase volumes across all quarters. In a stagnating global airfreight market Kuehne + Nagel generated profitable growth and, overall, raised its tonnage by 4 per cent to 1.1 million tonnes. The group’s airfreight operations performed particularly well in Europe, Asia, and in the Middle East and Africa. In North America, cargo volumes increased on the routes to South America. In the area of industry-specific solutions, “KN PharmaChain”, the product tailored to the pharmaceutical and healthcare industry, generated new business.

After a weak first quarter, Kuehne + Nagel continuously improved EBIT in the road and rail segment, compared to the previous year. This was mainly due to the new strategy Road 2 Profit, which is based on the three distinct segments “groupage”, “full and part loads” and “industry-specific distribution” as well as product innovation and centralised purchasing. In order to improve profitability in the highly competitive groupage business, the enterprise launched the new product “KN Eurolink” and adapted the frequency of its international line haul services to the Eurohub in Bad Hersfeld, Germany, to market needs. Part and full load traffic continued to perform positively.

In contract logistics, a remarkable improvement of results was achieved. With an EBIT increase of 89.1 per cent, Kuehne + Nagel managed to almost double profit. This substantial improvement has been primarily due to the systematic implementation of the Master Location Plan, started 12 months ago. Under this initiative, some 40 unprofitable locations were closed; in addition, idle space was substantially reduced across the globe. Subsequently, EBITDA margin increased from 3.4 per cent in the previous year to 4.1 per cent. The focus on globally operating customers with complex logistics requirements and the extension of the service portfolio generated substantial new business. New customers were gained especially within the pharmaceutical and e-commerce industries.

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Quelle: LogEastics
Portal: www.logistik-express.com