October 13, 2015: The Kuehne + Nagel Group has reported a 6.7 percent increase in net profit to CHF512 million for the first nine months of 2015 on net turnover of CHF12.4 billion.
While net turnover and gross profit slightly decreased due to currency impacts, the operational result (EBITDA) improved by 4.6 per cent to CHF777 million compared with the previous year's period.
Kuehne + Nagel International CEO Detlef Trefzger noted: "In the third quarter we further improved our results, especially in seafreight and airfreight. Our strong focus on innovative logistics services and strict cost management enabled growth in profits in a demanding market environment."
In the first nine months of the year Kuehne + Nagel exploited growth opportunities in the US import business from Europe and Asia which compensated for the continuous market weakness in exports from Asia to Europe. Profitability improved substantially in this business unit: Gross profit per TEU increased by 4.4 per cent and the EBIT-to-gross profit margin (conversion rate) improved from 30.2 to 32.7 per cent. In comparison to the previous year's period EBIT increased by 11.7 per cent.
In a stagnating airfreight market, the company grew volumes by 5.1 per cent in the first nine months of 2015. The increasing demand for specialised services in the industry segments automotive, pharma, aerospace and perishables contributed to this favorable development as did the good performance in Asia, Europe and North America. In comparison to the previous year the conversion rate rose from 27.5 to 30.0 per cent. EBIT increased by 11.0 per cent.
During the first nine months net turnover declined by 12.1 per cent due to the discontinuation of project business and lower rates as a result of lower diesel prices. The acquisition of ReTrans, a US-based provider of multimodal transportation management solutions, consolidated since August 2015, will strengthen Kuehne + Nagel's market position as an integrated logistics provider in North America.
The capability to offer scalable end-to-end solutions in industries including automotive, high-tech, pharma and consumer goods led to numerous new contracts during the first nine months of 2015. However, the restructuring of selective projects in the UK and currency effects continued to impact the result negatively. EBIT decreased by CHF21 million to CHF86 million compared with the previous year's period.