Kuehne + Nagel International AG - Nine Months Results 2005 - Strengthened market position

The globally operating Kuehne + Nagel group remains on growth course. Turnover for the first nine months of the year rose 20.1 per cent to CHF 10,079.3 million. At CHF 321.8 million, the operational result (EBITA) improved 16.3 per cent on last year. Net earnings increased 33.0 per cent to CHF 216.7 million.

The continued good performance confirms Kuehne + Nagel’s customer-oriented business model and the group’s strong position in the global logistics market. Across the regions, business potentials were successfully exploited and additional market shares gained.

The particular strength of Kuehne + Nagel’s seafreight business was once again demonstrated by an above average 20 per cent growth in transport volumes (the overall market grew around 8 to 10 per cent) and an operational result up 36.8 per cent – among other things an indication of high operational efficiency.

In airfreight, too, the target to grow twice as fast as the market was achieved. Kuehne + Nagel increased tonnage by 10 per cent against the global air cargo market, which only gained around 4 per cent. Despite pressure on margins and considerable surcharges, the operational result improved 13.2 per cent.

European overland activities made good progress. Both the increased inclusion of road and rail transport in complex logistics solutions as well as the business volume from firms acquired in 2005 and that mainly operate in the groupage sector, accelerated growth and the gain of additional market shares. High costs accruing from integration, however, led to a temporary decline in the operational result.

In contract logistics, a 10.7 per cent increase in turnover is proof of accelerating growth in this business unit. In spite of considerable investments in the extension of the networks in Asia and Eastern Europe as well as start-up costs in connection with the implementation of new business, EBITA margins remained stable at 3.8 per cent. The operational result was up 7.0 per cent compared with the previous year.

“We are very pleased with the business performance and the development in results for the first nine months of the year”, said Klaus Herms, CEO of Kuehne + Nagel International AG, “and proud that we managed to accelerate organic growth and strengthen our global market position in a competitive market.”