23
October
2006
|
07:14
Europe/Amsterdam

Kuehne + Nagel International AG - Nine Months Results 2006

As in previous years, the globally operating Kuehne + Nagel Group continued to maintain its above-average growth rates during the first nine months of 2006. Turnover increased 31.8 per cent to CHF 13,289 million. The operational result (EBITDA) improved 53.1 per cent to CHF 611 million. After amortisation of intangibles of CHF 73 million, net earnings increased 45.1 per cent over last year’s period to CHF 315 million.

 

 

 

January - September

 

In CHF million.

 

2004

 

2005

 

2006

 

Kuehne + Nagel Group

 

 

 

 

 

 

 

Turnover

 

8,392

 

10,079

 

13,289

 

Gross profit

 

1,712

 

2,012

 

3,824

 

Operational result (EBITDA)

 

343

 

399

 

611

 

Earnings before tax (EBT)

 

239

 

305

 

429

 

Net earnings

 

163

 

217

 

315

 

Business performance during the first nine months of 2006 was characterised by strong growth in sea- and airfreight particularly in the third quarter, considerable business expansions in contract logistics and overland operations as a result of the rapid and effective integration of recent acquisitions, and company-wide high levels of operational efficiency.

Seafreight activities again performed above-average, recording a 19 per cent rise in volumes as compared with the market’s 9 to 10 per cent growth. Across all regions, the company successfully increased the demand for its IT-based services and efficient transport management solutions, and grew container volumes on all trade lanes. Productivity improvements through intensified electronic data exchange with customers and shipping lines as well as stringent cost management led to a 4.2 per cent EBITDA margin, up from 3.5 per cent. The operational result rose 36.8 per cent year-on-year.

Following a strong third quarter, Kuehne + Nagel’s airfreight business recorded an 11 per cent increase in tonnage, while the market only grew approximately 5 per cent during the first nine months of the year. Despite pressure on prices due to the highly competitive market and lower rates, Kuehne + Nagel maintained a stable EBITDA margin at 4.5 per cent and improved its operational result 15.3 per cent.

Kuehne + Nagel is investing in the expansion of its overland operations and has over the past months gradually come closer to the goal of operating its own European network. Intensified cooperation between the company’s national organisations across Europe and the successful integration of acquired firms contributed to a 21.0 per cent increase in turnover. The operational result was up 27.2 per cent compared with the previous year; the EBITDA margin remained stable at 1.7 per cent.

In contract logistics, the integration of the ACR Group, which was acquired and is consolidated in the financial statements effective January 1, 2006, is progressing to plan and generating strong impulses for cross-selling activities. Due to this acquisition and a 12 per cent organic growth, turnover in this business unit was almost tripled. At the same time, the operational result was more than tripled, and the EBITDA margin rose from 4.5 to 4.9 per cent.

“The successful implementation of our strategy to create added value for our customers worldwide through integrated logistics solutions is reflected in the consistent growth across all business fields and regions, and we are confident of exceeding previous full-year results again in 2006,” said Klaus Herms, Chief Executive Officer of Kuehne + Nagel International AG.