K+N riding a first quarter high

Kuehne + Nagel saw its net earnings improve by almost 18 percent in the first quarter as the Swiss logistics giant gained market share in all its business units.


Despite strong negative currency effects, net profit reached US$172 million, while Ebitda grew by 9.2 percent to $278 million.


"The good results in the first quarter underline the value of our global logistics capabilities, flexibility and operational efficiency in a market influenced by different economic conditions, political unrest and natural disasters," said Reinhard Lange, CEO of Kuehne + Nagel International AG.


"As planned we expanded our activities in all business units while at the same time increasing productivity.”


In sea freight, Kuehne + Nagel increased container volume by 14 percent while the global container market grew between seven and eight percent, the company said in a statement.


Kuehne + Nagel achieved highest growth in the trade lanes to and from Latin America as well as to and from the Middle East.


As outlined in its strategy, the Group increased volumes in transpacific and intra-Asia trade lanes.


With a 21 percent increase in volume, Kuehne + Nagel’s air freight business again exceeded expectations and outperformed the market, estimated to have grown between six and seven percent.


In all regions, Kuehne + Nagel benefited from its investment in sales and its industry-specific product offering. In particular, Kuehne + Nagel’s expansion of the specialised network for perishables yielded results.


Following the acquisitions in South America, volumes significantly increased in this segment. Double-digit growth was also achieved in worldwide exports for the automotive industry.


Kuehne + Nagel gained market share in the European overland business as well. Net invoiced turnover increased by 15.1 percent (currency adjusted) exceeding market growth of six percent.


Ebitda remained stable on last year’s level, despite continuous price pressure, fierce competition and investments into the expansion of the European groupage network and its full and part load activities.


In the contract logistics business unit net invoiced turnover rose by 7.9 percent (currency adjusted). New business wins contributed to a reduction of idle space from 12 to seven percent compared with the previous year's first quarter.


However, start-up costs for various new projects negatively impacted EBITDA, which was 8.9 percent below the preceding year. EBITDA margin declined from 4.2 to 3.9 percent.


Measures have been implemented to improve productivity, the company said.
(Source:http://www.cargonewsasia.com)