Kuehne + Nagel reports rise in H1 profits; airfreight volumes see 18.1% increase y/y in H1
July 20, 2018: Logistics giant Kuehne + Nagel reported airfreight tonnage increase by 18.1 percent to 863,000 tonnes in the first six months, while overall group profits were also on the rise.
“Airfreight remained successful in the first half of the year and continued its strong performance from the previous quarters. Industry-specific solutions made a particularly important contribution here,” said the company through a statement. Compared to the previous year, EBIT increased by 20.5 percent to CHF 182 million. A further increase was also recorded in the conversion rate which with 31.0 percent is at a high level.
However, on the other hand, another logistics giant Panalpina saw 3 percent increase in air freight volumes in the first half of 2018.
Coming to seafreight, Kuehne + Nagel saw improved seafreight volumes by 8.1 percent and thus grew considerably faster than the overall market, as the momentum increased in the second quarter. The company gained significant new business, mainly with its integrated digital solutions; growth drivers were full-container-load shipments (FCL) and Project, Oil & Gas, Marine Logistics. EBIT for the first half of the year was up 6.1 percent at CHF 210 million with overall margins stabilising.
While Panalpina’s Ocean Freight volumes decreased 3 percent year-on-year, mainly as the result of a discontinued high-volume contract.
Kuehne + Nagel's overland transport continued to increase in all business areas. Net turnover rose by 17.7 percent and gross profit by 16.5 percent. Dynamic growth was achieved in the European and North American trade lanes.
While the net turnover from contract logistics division increased by 12.2 percent and gross profit by 11.3 percent. New business based on scalable and tailored logistics solutions, particulary in e-commerce fulfilment, made a major contribution to this.
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “Kuehne + Nagel remains en route for success in the first half of 2018. We achieved strong volume growth across all business units. This growth combined with active cost management delivered a significant improvement in results confirming the consistency of the implementation of our business strategy. Our high level of industry-specific competence and our digital solutions are key factors here. We monitor the volatile markets and geopolitical developments very closely. Despite this market environment we are confident and ambitious as we enter the second half of the year.”