Kuehne + Nagel made progress in terms of profitability

Kuehne + Nagel achieves clear success in the business units airfreight and contract logistics in Q 1/2013; focus remains on management of costs and margins
 
“Particularly in view of the recessive economic situation in the euro zone, which also poses challenges for our company, we can be quite satisfied with the results of the first quarter 2013. The measures introduced to increase efficiency and improve profitability are working effectively. We will continue to focus on margin and cost management and are therefore confident to achieve further improvements. Growth opportunities will arise mainly in regions outside of Western Europe,“ Karl Gernandt, Chairman of Kuehne + Nagel International AG, comments on the development of the globally operating provider of logistics services in the first quarter of 2013.
 
In a softened market environment, the Kuehne + Nagel Group concentrated on the improvement of internal efficiency and profitability, resulting in positive achievements in the business units airfreight and contract logistics in the first quarter 2013. Turnover increased by 5.4 per cent to CHF 5,094 million compared to the previous year’s period. Gross profit improved by 2.3 per cent to CHF 1,537 million and at CHF 219 million, the operational result (EBITDA) was above the previous year’s level. Net earnings amounted to CHF 134 million (last year: CHF 68 million). “We have seen positive developments particularly in North America, Middle East, Eastern Europe and South Asia,“ reads the press release.
 
Kuehne + Nagel increased its container volume by 2.3 per cent in the period from January to March. In the trades from Europe to Asia, Kuehne + Nagel suffered a volume decline and just grew moderately in the opposite direction. On most other routes, however, volume increases between 5 and 10 per cent were realised. In airfreight, Kuehne + Nagel increased its volumes by approximately 5 per cent, opposite to the market declining by 2 per cent. Apart from the favourable demand situation in Asian export business, the company moderately increased its tonnage in outbound traffics from Europe.
 
The restructuring measures in the contract logistics business unit showed clearly positive effects in the form of EBITDA increasing by 27.3 per cent compared to the same period 2012. Net turnover rose by 2.5 per cent. EBITDA margin was at 3.8 per cent (2012: 3.1 per cent).
 
The tense economic situation in Europe impacted the development of both, business and results. In addition, adverse weather conditions throughout the first quarter negatively impacted the volume development. While results in the full and part loads segment improved, volume declines in the groupage business affected results negatively. Overall, EBITDA decreased from CHF 14 million in the previous year’s period to CHF 2 million in the first quarter of 2013. The EBITDA margin was at 0.3 per cent.

Quelle: LogEastics

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