Earnings for the period improved despite changes in currency relations
Kuehne + Nagel Group
1st quarter 2015
1st quarter 2014
Operational result (EBITDA)
Earnings for the period
Due to the concentration on profitable business and the unexpected weakness of market volumes in the Asia-Europe trade lanes, container volumes slightly decreased in comparison to the previous year’s period (-0.7 per cent). However, Kuehne + Nagel succeeded to improve gross profit per TEU by 2.2 per cent as well as the conversion rate from 28.8 per cent in the previous year to 29.0 per cent. EBIT grew by 2.2 per cent.
Kuehne + Nagel had a very successful start into 2015 with a tonnage increase of 7 per cent compared to the previous year’s period. The Group gained significant share of the strong European export business and – occasionally in contrast to the market trend – grew volumes in export activities from North America and Asia. The airfreight business from South America, the Middle East and Africa developed with the same volumes as in the previous year’s period. The conversion rate improved from 28.3 per cent in the first quarter of 2014 to remarkable 30.8 per cent. EBIT increased by 9.7 per cent compared to the previous year.
The positive development of results continued although net turnover declined by 15.2 per cent due to the discontinuation of project business and lower rates as a result of declining diesel prices. EBIT, however, improved from CHF 3 milllion in the previous year’s period to CHF 4 million due to business wins in the focused industry segments and strict management of operational costs.
The positive momentum in regard to new business wins extended into the first quarter of 2015, but slowed down due to volume reductions in existing businesses with major customers in Western Europe. The strong Swiss Franc disproportionally affected the turnover and gross profit development negatively. Structural changes and price negotiations with contract logistics customers in Western Europe as well as the built-up of resources for organic growth impacted the result negatively. EBIT decreased by CHF 9 million compared to previous year’s period.
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “The development of our results is remarkably positive, considering the decreasing import flows of goods to Europe due to the weakness of the Euro. In addition, the strong Swiss Franc negatively affected the result. We will pursue our strategy of profitable growth.”