SCHINDELLEGI, Switzerland: March 01, 2017. Kuehne + Nagel has reported an increase in net profit to CHF720 million on net turnover of CHF16.5 billion for 2016, compared to CHF679 million and CHF16.7 billion respectively the previous year.
Commenting on the results CEO Detlef Trefzger said the company was "well positioned for continued profitable growth, which we will accelerate by selected acquisitions".
Despite handling over four million TEU for the first time in 2016, K+N acknowledged the impact on its ocean business of "historically low freight rates" and pressure on margins, as well as weak development in the oil and gas industry.
However its airfreight business delivered "a very pleasing performance" last year as growth picked up in the fourth quarter and the company increased tonnage by 4.3 percent to 1.3 million tons carried in the 12-month period.
Net turnover in overland services rose 11.9 percent last year following expansion both in Europe and the U.S. that saw the integration of ReTrans, a Memphis-based provider of multimodal transportation management solutions acquired by K+N in 2015.
The company's contract logistics division produced a 5.7 percent gain in net turnover last year with the implementation of 100 new projects in the automotive, e-commerce, high-tech, consumer goods, aerospace, pharmaceuticals and healthcare sectors - supported by 10 million square meters of warehousing.
Board chairman Joerg Wolle commented: "The Kuehne + Nagel Group is in excellent shape and in a strong competitive position. Based on the 2016 full-year results, the company can look forward to the future with confidence. "
Trefzger added: "In a market environment characterized by multiple challenges, we were successful with our focus on customer requirements, our solution-oriented approach and our balanced service portfolio. In all business units we gained market shares while further increasing overall profitability."