Solid growth – Currency impacts
by 8.3 per cent (currency adjusted by 12.8 per cent) to CHF 313 million. EBIT increased by 8.2 per cent (currency adjusted by 12.8 per cent)
to CHF 396 million and the operational result (EBITDA) by 4.5 per cent (currency adjusted by 8.8 per cent) to CHF 487 million. Gross profit
at CHF 3,107 million was slightly below the previous year’s level, currency adjusted it increased by 3.1 per cent.
Kuehne + Nagel Group
Operational result (EBITDA)
“By focussing on internationally operating customer groups with demanding logistics and supply chain management requirements as well as on the provision of industry-specific logistics solutions we were able to increase volume growth in all business units in the first half of 2014. At the same time our effective cost management supported the improvement of results”, said Dr. Detlef Trefzger, CEO of the Kuehne + Nagel Group. “Once again the excellent performance in airfreight is to be highlighted. The overland business unit has successfully continued its turnaround and in contract logistics profitability further improved. However, our results were negatively impacted by the strong Swiss Franc. Seafreight results suffered from this trend in particular despite the solid growth and high productivity achieved in this business unit.”
With seafreight volumes increasing by more than 8 per cent Kuehne + Nagel
grew twice as fast as the market. In total, the company handled 1.892 million TEU, 143,000 TEU more as in the same period of the last year. Kuehne + Nagel gained additional market shares particularly in the export business from Asia, Europe and North America. Activities in the Latin America trade lanes did not develop as strongly. Due to volume growth and high profitability Kuehne + Nagel was able to keep the EBIT-to gross profit margin (conversion rate) at a high level with 29.1 per cent (previous year: 29.9). The declines in gross profit and EBITDA are partly due to negative currency effects in the USD businesses.
The international airfreight market experienced a moderate recovery in the first six months of the year, with volumes increasing between 3 and 4 per cent. Kuehne + Nagel grew volumes by 4 per cent, after a modest start to the 2014 business year. The primary factors for this positive development were the intensified sales of specific solutions for the automotive, pharma-ceutical and aviation industries as well as the increase in tonnage especially in the European and South American export business. Compared to the previous year’s period, EBIT-to-gross profit margin improved from 24.9 to 27.8 per cent. The operational results increased by 5.6 per cent (currency adjusted by 11.3 per cent).
Due to the systematic implementation of the “Road 2 Profit” strategy, results in the overland business unit further improved. This has led to an EBIT improvement in three consecutive quarters, since the turnaround to a positive trend commenced in the fourth quarter 2013. Currency adjusted net turnover grew by 5.5 per cent in the first half of 2014 and the operational result rose from CHF 17 million to CHF 35 million. EBIT increased disproportionately by CHF 21 million to CHF 16 million.
The continuous implementation of the master location plan as well as the company-wide concentration on global customers with complex logistics and supply chain management requirements resulted in a profitability increase and enabled Kuehne + Nagel to further strengthen its project portfolio. In the first six months net turnover increased currency adjusted by 4.5 per cent and the operational result by 5.1 per cent. EBIT margin improved from 2.8 per cent in the first half of 2013 to 3.0 per cent in the same period of 2014.
Karl Gernandt, Chairman of the Board of Directors of Kuehne + Nagel International AG: “The half-year results confirm that the company’s strategic cornerstones for continuous growth and profitability are working effectively. The volatile market environment requires an ongoing improvement of services for our customers and this will remain our aim for the second half of 2014.”