Kuehne & Nagel sees 20% rise in EBITA

Kuehne & Nagel International AG has reported earnings before interest and taxes up 20 per cent last year to CHF761 million (US$869.5 million). Net sales rose 0.8 per cent to CHF20.9 billion.


Kuehne & Nagel sees 20% rise in EBITA


Kuehne & Nagel International AG has reported earnings before interest and taxes up 20 per cent last year to CHF761 million (US$869.5 million). Net sales rose 0.8 per cent to CHF20.9 billion.

Seafreight volumes rose three per cent, with air freight volumes increasing 3.8 per cent. Sales at the road and rail unit fell three per cent, while rising five per cent at the contract logistics unit.

Subdued economic activity is weighing on shipping companies as eurozone countries struggle in the aftermath of the longest recession since the currency was introduced, and growth in China and India slows. K+N’s contractlogistics unit closed 40 locations to focus on profitable regions, and the company is trying to turn around its road- and rail-logistics business. “By concentrating on selective growth in seafreight, we succeeded in keeping margins stable despite high volatility of rates,” chief executive officer Detlef Trefzger said in the statement.

Kuehne & Nagel forecast that company air and seafreight volumes will rise 50 per cent faster than the market this year. It expects global seafreight volumes to advance two per cent to four per cent, while industry-wide airfreight volumes will increase by 1-3 per cent. It plans to grow its contract logistics unit at double the estimated market pace of between 2-3 per cent. Its road and rail unit, which has been loss- making since at least 2005, will keep pace with the market growth at 1-3 per cent, the company said.