Kuehne + Nagel in 2012: weak growth in Europe

KN wants to add impetus to its Contract Logistics and Road & Rail Logistics units in 2013; about 3.5 million TEU were handled by seafreight in 2012
 
The Kuehne + Nagel group reckons with a challenging market environment in 2013. There are still a lot of uncertainties regarding the economic development. It is assumed that the European economy will not recover quickly and sustainably, while there are encouraging signals from the emerging markets and the USA, as the company stated on the press conference on the annual results.
 
Karl Gernandt, Chairman of the Board of Directors of Kuehne + Nagel International AG:  In the difficult market environment 2012 the strategy of the Kuehne + Nagel Group to focus on regional and industry-specific growth segments has proven its worth. However, we did not manage to adjust our costs in a timely manner everywhere; as a result we had to experience setbacks in profitability in several countries. Taking this into consideration, Kuehne + Nagel will realign its management and organisational structures in order to react more quickly and efficiently to market demands and growth potentials. From our new members to the Management Board we expect important impulses for the operational development of the business units Contract Logistics and Road & Rail Logistics.  In the 2012 financial year the globally operating provider of transport and logistics services increased volumes in all business units. 
 
Seafreight volume increased by 6 per cent to approximateley 3.5 million TEU. As to airfreight the group raised its tonnage by 2 per cent. In the Road & Rail Logistics unit growth continued in the segments groupage, full and part loads and industry-specific distribution, resulting in an increase in net turnover of 7.4 per cent. However, volume growth slowed down in the second half of the year due to the further deterioration of the economy, particularly in Southern Europe. In contract logistics the year 2012 was characterised by demand fluctuation, regional variations in warehouse capacity utilisation and significant pressure on prices.
 
While large increases were recorded in the regions Middle East, Central Asia and Africa (17.4 per cent), Asia-Pacific (15.9 per cent) and North, Central and South America (13.8 per cent), in Europe, turnover increased by 0.6 per cent only. Achieing a total turnover of CHF 20,75 million – an increase of 5.9 per cent compared to the previous year   the group sustained its position in a highly volatile market environment.
 
However, results were negatively impacted by declining profit margins, cost increases and an antitrust fine of CHF 65 million imposed by the European Commission in March 2012. Turnover increased by 5.9 per cent to CHF 20,753 million and gross profit improved by 3.3 per cent to CHF
 
6,094 million compared to the previous year. The operational result
 
(EBITDA) declined by 5.8 per cent to CHF 921 million. Net earnings decreased to 493 million.

Quelle: LogEastics

Portal: www.logistik-express.com