13
October
2015
|
06:45
Europe/Amsterdam

Growing profits

In the first nine months of 2015 the Kuehne + Nagel Group accelerated its growth and results development. While net turnover and gross profit slightly decreased due to currency impacts, the operational result (EBITDA) improved by 4.6 per cent to CHF 777 million compared with the previous year’s period. In spite of negative currency effects of 7.5 per cent, the earnings for the period increased by 6.7 per cent to CHF 512 million.

Kuehne + Nagel Group

January to September
2015

January to September
2014

CHF million

Net turnover

12,426

13,004

Gross profit

4,609

4,699

Operational result (EBITDA)

777

743

EBIT

640

607

Earnings for the period

512

480


Seafreight

In the first nine months of the year Kuehne + Nagel exploited growth opportunities in the US import business from Europe and Asia which compensated for the continuous market weakness in exports from Asia to Europe. Profitability improved substantially in this business unit: Gross profit per TEU increased by 4.4 per cent and the EBIT-to-gross profit margin (conversion rate) improved from 30.2 to 32.7 per cent. In comparison to the previous year’s period EBIT increased by 11.7 per cent.

Airfreight
In a stagnating airfreight market, Kuehne + Nagel grew volumes by 5.1 per cent in the first nine months of 2015. The increasing demand for specialised services in the industry segments automotive, pharma, aerospace and perishables contributed to this favourable development as did the good performance in Asia, Europe and North America. In comparison to the previous year the conversion rate rose from 27.5 to 30.0 per cent. EBIT increased by 11.0 per cent.

Overland
The overland business reported a stable result. During the first nine months net turnover declined by 12.1 per cent due to the discontinuation of project business and lower rates as a result of lower diesel prices. The acquisition of ReTrans, a US-based provider of multimodal transportation management solutions, consolidated since August 2015, will strengthen Kuehne + Nagel’s market position as an integrated logistics provider in North America.

Contract Logistics
The capability to offer scalable end-to-end solutions in industries including automotive, high-tech, pharma and consumer goods led to numerous new contracts during the first nine months of 2015. However, the restructuring of selective projects in the United Kingdom and currency effects continued to impact the result negatively. EBIT decreased by CHF 21 million to CHF 86 million compared with the previous year’s period.

Dr. Detlef Trefzger, CEO, Kuehne + Nagel International AG: “In the third quarter we further improved our results, especially in seafreight and airfreight. The development in overland is solid and the optimisation of selective projects in contract logistics is proceeding as planned. Our strong focus on innovative logistics services and strict cost management enabled growth in profits in a demanding market environment. The performance in the first nine months confirms our market strategy and we see our Group on the right track.”