Kuehne + Nagel's first quarter profit up 17.6pc to US$171.4 million

THE Kuehne + Nagel Group has posted a first quarter 2011 net profit of CHF154 million (US$171.4 million), a 17.6 per cent year-on-year increase, with the company claiming share gain from all units.


The company statement declared that in spite of strong negative currency effects, revenues increased 4.7 per cent to CHF4.8 billion while the operational profits (EBITDA) grew 9.2 per cent to CHF 249 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 group CEO Reinhard Lange.


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


In sea freight, the logistics group increased container volume 14 per cent, achieving the highest growth in the trade lanes to and from Latin America and also the Middle East. It said volumes in transpacific and intra-Asian trade lanes rose too. In the first three months of the year EBITDA improved by 15.5 per cent year on year to CHF112 million.


Air freight volumes were up 21 per cent, with the operational result rising 28.6 per cent to CHF63 million.


The company, in part, attributed the growth to industry specific product offerings, in particular, the expansion of its perishables network yielded results. It said that following acquisitions in South America, volumes significantly increased in this segment. Double-digit growth was also achieved in worldwide exports for the automotive industry.


Its road and rail logistics segment achieved revenue growth of 15.1 per cent. As for the contract logistics business unit net invoiced turnover rose by 7.9 per cent, with new business wins contributing to a reduction of idle space from 12 to seven per cent compared with the same quarter in 2010. However, start-up costs for various new projects negatively impacted EBITDA, which was 8.9 per cent below the preceding year, the group said.
(Source:http://www.schednet.com)