Kuehne + Nagel: Improved results despite reduced volume growth

Kuehne + Nagel withdraw from intensive competition on Asia-Europe container traffic; prolonged strategy in overland and contract logistics

“We concentrate on profitable growth and are on good track to reach our goals. In seafreight, our most important business unit, we focused on the quality of business instead of volume growth by all means. In a demanding market environment we thus reached our profitability target in seafreight. Strict cost management will remain in place for the whole company and at the same time we will also continue to enhance the spectrum of solutions and the service quality for our customers,” said Detlef Trefzger, CEO of Kuehne + Nagel International AG, about the economic development of the globally operating transport and logistics provider during the first three quarters of the year 2013.

The Kuehne + Nagel group improved results on EBIT level in the first nine months of 2013 by 6 per cent compared to the previous year’s period (adjusted for one-off antitrust fine) despite reduced growth rates in its strongest business unit Seafreight, particularly in the third quarter. While overall turnover increased 1.5 per cent to CHF 15,7 million in the first nine months, gross profit improved by 2.8 per cent to CHF 4,68 million and earnings before taxes (EBT) by 6 per cent to CHF 567 million compared to the same period of the previous year. Net earnings amounted to CHF 442 million (2012: CHF 357 million).

In the container business market shares were gained in the transatlantic and transpacific trade lanes, whereas the company did not participate in the intensive competition on the Asia-Europe traffic. As a result of this decision, the company increased container volumes by 2.3 per cent in the first three quarters, they state in a press release.

In airfreight, Kuehne + Nagel increased overall tonnage by 3.3 per cent in the first nine months despite a stagnating global airfreight market. Worth mentioning is the good performance of the European airfreight business, particularly transports to the Middle East grew significantly.

In overland business the focus has been on growing activities in the areas pharmaceutical, high-tech, automotive and industrial goods as well as in international groupage and part- and full loads. In contract logistics the company adhered to its master location plan and portfolio adjustments as well as the concentration on end-to-end-logistics solutions for internationally operating customer groups.

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