Profits rise at Kuehne + Nagel

Kuehne + Nagel increased its operating profit from CHF918 million in 2016 to CHF937m last year, while turnover rose from CHF20m to CHF22.2m.

In Contract Logistics, net turnover increased by 7.8 per cent, gross profit by 10.5 per cent and EBIT improved by 9.5 per cent.

In seafreight, Kuehne + Nagel increased volumes by 7.5 per cent and increased its market share. However, the company said that in many trade lanes rate increases occurred, which could only be passed on to the customers partly and with delay, especially in the first two quarters. Kuehne + Nagel’s growth in volume and productivity did not fully compensate for the margin pressure. EBIT declined by 7.0 per cent in comparison to the previous year.

In airfreight, Kuehne + Nagel increased tonnage by 20.4 per cent compared to a ten per cent rise in the overall market. EBIT increased by 5.0 per cent.

Overland transport EBIT rose 75 per cent on a 7.6 per cent increase in turnover.

Chief executive Dr Detlef Trefzger said: “2017 was another successful year for the Kuehne + Nagel Group. The consistent implementation of our business strategies resulted in strong volume growth and a clear increase in gross profit. Once again, our integrated business model has shown its strength: The effects of difficult market conditions in one business unit were more than compensated by increased profitability in the other divisions.

“With our digital solutions we further increased efficiency and improved customer value at the same time. Highlights from the past business year include the seamless integration of four acquisitions which strengthen our leading position in perishables as well as pharma and healthcare logistics. Our new strategic programme is setting the course for the future success of our Group with technology- and data-based solutions”.