SCHINDELLEGI, Switzerland: Kuehne + Nagel (K+N) has reported a 6.1 percent increase in net profit for 2014 of CHF644 million on a gross profit of CHF6.288 billion. Net turnover was CHF17.5 billion, an increase of 1.9 percent over the previous year.
Commenting on the results K+N chairman Karl Gernandt noted: "We set ourselves ambitious targets and we have reached these with a new record result. In 2015 market conditions will again be challenging, therefore the continuous improvement of our performance remains our clear ambition."
Detlef Trefzger, the company's CEO, added: "In a volatile economic environment with fluctuating currencies, we were able to simultaneously expand our market share and increase results in 2014. The turnaround in the overland business unit made an essential contribution to the considerable improvement in profitability. For the first time profits were reported over four consecutive quarters."
Although K+N's overland business produced a slight drop in net turnover from CHF4.18 billion in 2013 to CHF4.11 billion last year, EBIT rose from CHF-8 million to CHF30 million during the period.
For its seafreight business, the company reported net revenue of CH8.44 billion, up from CHF8.33 billion a year earlier, and a segment EBIT of CHF398 million, a slight decrease from CHF405 million year-on-year. K+N says it handled over 3.8 million TEU, an increase of 242,000 containers or 7.0 percent compared to 2013, prompted by an improved U.S. economic climate and "considerable volume increases" in transpacific and transatlantic trade lanes.
Airfreight revenue rose from CHF5.78 billion to CHF5.87 billion during the period for an EBIT of CHF238 million compared to CHF222 million the previous year. In addition to improved profitability, the company outperformed general market growth of 3-4 percent with a 5.3 percent increase in traffic. K+N cites "significant business wins in the pharmaceutical, automotive and industrial goods sectors" as key success factors.
During 2014 the company's contract logistics operation increased net turnover by 4.4 percent from CHF4.42 billion to CHF4.58 billion for a 7.7 percent in EBIT of CHF153 million in part to the acquisition of "complex and innovative projects" with pharmaceutical, automotive and e-commerce customers.