Kuehne + Nagel: unsatisfactory results for the first quarter 2012

Stable turnover, margin pressure, cost increases and antitrust fine lower Kuehne + Nagel’s operating results
 
For the Kuehne + Nagel group the first quarter 2012 developed worse than expected. “Despite further volume growth, cost increases, lower margins in the forwarding business and an antitrust fine of CHF 65 million imposed by the European Commission led to unsatisfactory results”, the enterprise announced at the start of this week.
 
At CHF 4,834 million, turnover remained stable compared to the previous year’s period (currency adjusted: increase of 5.4 per cent). Gross profit improved by 3 per cent (currency adjusted by 8.1 per cent) to CHF 1,502 million. The operational result (EBITDA) declined by 12.4 per cent to CHF 218 million, including the one-off item for the antitrust fine to CHF 153 million. Net earnings decreased by 14.2 per cent to CHF 133 million, including the one-off item to CHF 68 million.
 
“In the first quarter of 2012 we had to cope with a number of adverse factors,” said Reinhard Lange, CEO of Kuehne + Nagel International AG. “Our investments in growth initiatives resulted in considerable cost increases. We will counteract this trend with strict cost control and measures to improve productivity. Furthermore, profit margins declined in sea and airfreight.”
 
In seafreight, Kuehne + Nagel increased container volume by 9 per cent while – according to first estimates – the global container market grew between 3 and 4 per cent. In line with its strategic goals, the group increased growth in the transatlantic and transpacific trades. As a result of margin pressure, also influenced by significant rate increases in several trade lanes, and high investments in IT and sales, the operational result decreased by 15.2 per cent compared to the previous year’s period.
 
In the airfreight segment Kuehne + Nagel raised tonnage by 4 per cent in the first three months of the year. Beside the ongoing positive demand in South America, the intra-Asia business developed well and volumes increased in the trades from Asia-Pacific to the Middle East. In the European overland business good progress was made. Despite the difficult economic situation in Southern Europe freight volumes increased in the segments groupage and full and part loads.
 
This let net turnover raise by 18 per cent in local currencies. The contract logistics business saw strong demand in Central Europe, Asia and South America, accompanied by volume declines in France and Southern Europe in the first quarter of 2012.

Quelle: LogEastics

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