Half year result 2007 - Strong performance across all business fields

„We have maintained the first quarter’s strong momentum and achieved convincing growth rates across all business units,” said Klaus Herms, Chief Executive Officer, Kuehne + Nagel International AG. “The key drivers of this consistent performance are our global capabilities, efficient logistics infrastructure, and the integrated business model, which provides the Group with significant cross-selling opportunities.”SeafreightIn a highly competitive environment, Kuehne + Nagel’s value-creatingIT-based products, as well as its professional capacity management, which particularly has been of advantage for customers exporting from the Far East, generated strong growth. Last year’s high volumes were surpassed by 15 per cent; turnover increased by 13.6 per cent. Despite pressure on margins, Kuehne + Nagel improved the operational result by 15.0 per cent. The EBITDA margin remained stable at 4.1 per cent.AirfreightThe results for the first six months of the year exceeded expectations.The remarkable 16.1 per cent increase in tonnage and the EBITDA margin of 5.7 per cent both represent record levels. Turnover increased by 7.1 per cent and the operational result improved by 25.5 per cent. Key factors contributing to the excellent performance were high cost efficiency, considerable new business wins resulting from cross-selling, and the integration of airfreight in complex logistics solutions.Rail & Road LogisticsOverland operations are progressing fast. With Kuehne + Nagel’s own groupage network in place, all national companies across Europe were able to increase volumes. This business unit too benefited from cross-selling and the integration of rail and road transportation in comprehensive projects. Turnover rose by 17.5 per cent. Investments in the further expansion of the overland network and in the standardisation of IT systems led to a 25.9 per cent reduction in the operational result. The EBITDA margin was at 1.6 per cent.Contract LogisticsThe investments made over the past years in the expansion of contract logistics activities are now paying off. The record 21.6 per cent growth in turnover for the first half of 2007 underlines the increasing demand for global logistics providers that operate at high levels of process and IT standardisation. The operational result improved by 15.1 per cent, with the EBITDA margin at 5.1 per cent.OutlookThe results for the first half year are a confirmation of both the efficiency of the customer-oriented business model, as well as the Group’s strong position in the global logistics market. Against this background, the Management Board of Kuehne + Nagel International AG is confident to be able to continue the good performance in the second half of the year.