K+N considers global job cuts
Kuehne + Nagel Group (K+N) is reportedly considering 4,500 job cuts following the announcement of modest increases in earnings and revenue for 2008 and expressions of concerns over immediate future business prospects. In its annual results statement released this week, the Switzerland-based global forwarding and logistics provider commented that Ã¢â‚¬Å“for the time being there are […]
April 1, 2009
In its annual results statement released this week, the Switzerland-based global forwarding and logistics provider commented that Ã¢â‚¬Å“for the time being there are no indications that world economy will recover quickly; therefore further volume reductions are expected in all business units. Kuehne + Nagel will counteract this with rigorous cost management and process efficiencies.Ã¢â‚¬Â
Group turnover increased by 3 per cent in 2008, compared with 2007, to CHF21,599 million (Ã¢â€šÂ¬14,128 million) while EBITDA (earnings before interest, tax, depreciation and amortisation) was flat at CHF1,020 million.
The groupÃ¢â‚¬™s air freight forwarding business saw strong demand in the first half of the year but was offset by falling volumes in the fourth quarter, resulting in full-year turnover being up by just 3.8 per cent and EBITDA by 0.5 per cent.
In the groupÃ¢â‚¬™s contract logistics business turnover grew by 1.4 per cent but EBIT fell by 49 per cent to CHF54 million. The low profit figure was caused as much by start-up costs in Eastern Europe as falling demand in the west.