Kuehne + Nagel reports strong volume growth for first nine months of 2011
Besides currency, perhaps the slowing global economy also negatively affected Kuehne + Nagel’s third quarter (July-September) financials. Invoiced turnover for third quarter was CHF 4.8bn, an almost 10% decline from 2010. Gross profit declined over 4% to CHF 1.4bn and earnings declined 15.4% to CHF 143m.
By segment, gross profit growth was positive for all except Contract Logistics. The company noted a continuation of consolidating strategic logistics hubs and profitability issues in France.
Perhaps the most interesting points in Kuehne + Nagel’s earnings release was the volume growth in both air freight and sea freight. For the first nine months, sea freight volumes increased 11.4%. According to the company, the largest growth was noted in Asia exports; particularly to Middle East and South America. For third quarter, volumes increased over 10% compared to 2010.
Total year-to-date sea freight volumes by region indicate little change as compared to 2010. The Asia Pacific region increased from 49% of Kuehne + Nagel’s total sea freight tonnage in 2010 to 50% in 2011. Europe declined from 30% in 2010 to 29% of total tonnage.
Air freight volumes increased 14.5% with growth noted in the Europe, South America and North America export markets. Not surprising, lower volumes were reported from Asia to Europe and North America. The company also observed declining rates from Asia to Europe due to over-capacity. Still, for third quarter, volumes increased almost 9% over 2010.
As a percentage of total year-to-date air freight volumes, there are slight declines in all the regions except for "Other Exports" which now represents 25% of total air freight volume, as compared to 18% of total volume in 2010. Some of this shift may be attributed to the South American freight forwarding acquisitions the company made earlier this year, as well as the growing Middle East tradelane.
Reinhard Lange, CEO of Kuehne + Nagel expects the fourth quarter to be "demanding". Indeed, the fourth quarter will perhaps be "demanding" for most, if not all, freight forwarders as the market continues to experience rate and capacity issues.
Quelle: eyefortransport
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