Kuehne + Nagel: Positive development of results

Kuehne + Nagel Group – First Quarter 2013

KN125Schindellegi / CH, April 15, 2013 – In a softened market environment, the Kuehne + Nagel Group concentrated on the improvement of internal efficiency and profitability, resulting in positive achievements in the business units airfreight and contract logistics. Turnover increased by 5.4 per cent to CHF 5,094 million compared to the previous year’s period. Gross profit improved by 2.3 per cent to CHF 1,537 million and at CHF 219 million, the operational result (EBITDA) was above the previous year’s level. Net earnings amounted to CHF 134 million (last year: CHF 68 million).

Kuehne + Nagel Group
CHF million 1st Quarter 2013 1st Quarter 2012
Turnover 5,094 4,834
Gross profit 1,537 1,502
Operational result (EBITDA) 219 153*
EBT 171 103*
Net earnings 134 68*

*Including one-off item of CHF 65 million.

Kuehne + Nagel increased its container volume by 2.3 per cent. In the trades from Europe to Asia, Kuehne + Nagel suffered a volume decline and just grew moderately in the opposite direction. On most other routes, however, volume increases between 5 and 10 per cent were realised. With measures taken to streamline the cost structure, EBIT-to-gross profit margin (28.6 per cent / previous year: 28.3 per cent) and EBITDA will continuously improve.

In airfreight, Kuehne + Nagel succeeded in increasing its volumes by approximately 5 per cent, opposite to the market declining by 2 per cent. Apart from the favourable demand situation in the Asian export business, the company moderately increased its tonnage in outbound traffics from Europe. Efficient cost management and productivity improvements led to an increase of the EBIT-to-gross profit margin from 23.5 to 24.2 per cent. EBITDA improved by 9.3 per cent compared to the previous year.

Contract Logistics
The restructuring measures in the contract logistics business unit showed very positive effects. Currency adjusted, net turnover rose by 2.5 per cent. EBITDA increased by 27.3 per cent compared to the previous year’s period. The EBITDA margin was at 3.8 per cent (2012: 3.1 per cent).

Road & Rail Logistics
The difficult economic situation in Europe impacted the development of both, business and results. In addition, adverse weather conditions throughout the first quarter negatively impacted the volume development. While results in the full and part loads segment improved, volume declines in the groupage business affected results negatively. Overall, EBITDA decreased from CHF 14 million in the previous year’s period to CHF 2 million in the first quarter of 2013. The EBITDA margin was unsatisfactory at 0.3 per cent.

Karl Gernandt, Chairman of Kuehne + Nagel International AG: “Particularly in view of the recessive economic situation in the euro zone, which also poses challenges for our company, we can be quite satisfied with the results of the first quarter 2013. The measures introduced to increase efficiency and improve profitability are working effectively, underlined by the performance of the business units airfreight and contract logistics. We will continue to focus on margin and cost management and are therefore confident to achieve further improvements. Growth opportunities will arise mainly in regions outside of Western Europe. In the first quarter 2013, we have seen positive developments particularly in North America, Middle East, Eastern Europe and South Asia.“

About Kuehne + Nagel

With over 63,000 employees at more than 1000 locations in over 100 countries, the Kuehne + Nagel Group is one of the world’s leading logistics companies. Its strong market position lies in the seafreight, airfreight, contract logistics and overland businesses, with a clear focus on providing IT-based integrated logistics solutions.Further information can be found at www.kuehne-nagel.com

SOURCE: Sumitted by Kuehne + Nagel

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