1st Quarter Results 2008 - Growth and resilience in a challenging market
Kuehne + Nagel Group
in CHF million
Operational result (EBITDA)
Kuehne + Nagel increased seafreight container volumes by 10 per cent. The economic slowdown in the United States led to a decline in imports from Europe and Asia which was more than compensated by the considerable rise in export volume. High productivity and efficient company-wide cost management improved the operational result by 17.6 per cent. The EBITDA margin was 4.4 per cent, compared with 4.1 per cent in 2007.
Kuehne + Nagel's airfreight business remained strong. Despite a volatile market, the company increased demand for its time-defined airfreight products, raising volumes by 17 per cent. In Europe, business performed particularly well, but the successful expansion of niche products, such as hotel logistics, also contributed to the remarkable result. Cost efficiency and productivity increases improved the operational result by 20.8 per cent. The EBITDA margin increased to 6.1 per cent, compared with 5.7 per cent in 2007.
Road & Rail Logistics
European overland business developed according to plan. The late 2007 acquisitions of German groupage providers G.L. Kayser and Cordes & Simon strengthened operations, increasing volumes (net turnover) by 14 per cent. In line with strategy, investments were made to expand and consolidate the network, as well as to further standardise information technology. At 1.5 per cent, the EBITDA margin remained at the previous year's level, while the operational result improved by 10.0 per cent.
In Contract Logistics, the focus was on the efficient implementation of new business won in 2007 and on expanding Eastern European operations. Investments in new logistics facilities led to a slightly lower EBITDA margin (5.2 per cent), compared with the previous year (5.4 per cent), and a slightly improved operational result. Growth was at 7 per cent, excluding currency impact at 11 per cent.
"Our strong market position, global reach and high value logistics offerings enabled us to generate additional growth and achieve a very good result in the first quarter," said Klaus Herms, Chief Executive Officer, Kuehne + Nagel International AG. "The impact of the economic slowdown is difficult to quantify. We are convinced of the resilience and stability of our business model."