Kuehne + Nagel Group reports results from first 9-months of 2015

In the first nine months of 2015, Kuehne + Nagel Group’s net turnover stood at CHF12.43bn representing a decline of 4.44% year-on-year. EBITDA stood at CHF777m, an increase of 4.58% compared with the same period last year. Consequently, Kuehne + Nagel’s margin stood at 6.25%.

According to the announcement, Kuehne + Nagel suggested the decline in net turnover was mostly attributed to currency fluctuations. All four of the company’s business segments – Seafreight, Airfreight, Overland and Contract Logistics – reported lower net turnover year-on-year.

For the Seafreight division, net turnover was down by 0.9%. However profitability improved substantially due to growth opportunities in the US import business from Europe and Asia. Gross profit per TEU increased by 4.4% and the EBIT-to-gross profit margin (conversion rate) improved from 30.2% to 32.7%. In comparison to the previous year’s period, EBIT increased by 11.7%.

In Airfreight, although net turnover fell 3.5%, volumes grew by 5.1% in the first nine months of 2015. Increased demand for specialised services in the automotive, pharma, aerospace and perishables sectors were largely behind the improvement in volumes.  Kuehne + Nagel also noted that it had “good performance” in Asia, Europe and North America. In comparison to the previous year, the conversion rate rose from 27.5% to 30.0%. EBIT increased by 11.0%.

For the Overland division, Kuehne + Nagel described its result as “stable”. During the first nine months of 2015, net turnover declined by 12.1% 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, is expected to strengthen Kuehne + Nagel’s market position as an integrated logistics provider in North America.

For Contract Logistics, net turnover fell by 3.0%. Kuehne + Nagel reported that it had agreed a number of new contracts across the automotive, high-tech, pharma and consumer goods sectors during the first nine months of 2015. However, the restructuring of some projects in the United Kingdom and continued currency effects had a negative impact on overall results. EBIT decreased by CHF21m to CHF86m compared with the previous year’s period.

Dr. Detlef Trefzger, CEO, Kuehne + Nagel International AG said, “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.”