July 20, 2016: Kuehne + Nagel, major logistics provider, sees an increase in air cargo tonnage by 2.9 percent in the second quarter of 2016 amidst challenging environment. In the global airfreight market, shrinking demand and excess capacity resulted in margin pressure.
Strong export business in Asia, the Middle East and Africa contributed equally to this development.
Compared to the first six months of the previous year, Kuehne + Nagel increased tonnage by 1.3 percent.
The sustainable profitability is reflected in the EBIT-to-gross profit margin, which at 30.8 per cent was slightly above the previous year’s level. EBIT improved by 8.1 percent to CHF 147 million.
The company was able to increase gross profit by 8 percent to CHF 3.257 million in the first six months of 2016 while net turnover slightly decreased.
The operating result (EBITDA) grew by 10 percent to CHF 547 million. Earnings for the period improved by 9 percent to CHF 356 million compared to the previous year’s period.
Detlef Trefzger, CEO of Kuehne + Nagel International AG, “The first half of 2016 has been shaped by different regional economic development trends. Global trade showed a lack of growth momentum. Our strategy to focus on organic growth and gaining market shares by offering industry-specific solutions once again led to increases in volumes and results. Our Group delivered a strong performance and has significantly improved gross profit, and therewith increased profit.”
In seafreight, Kuehne + Nagel continued to grow and, for the first time, succeeded in handling over one million TEU in one quarter. Compared to the first six month of the previous year, the Group increased its container volume by 5.8 percent. This growth well above market average was primarily a result of the larger volumes in the export business from Asia to Europe and the US. The LCL and reefer container businesses performed well.
Substantial growth in net turnover and gross profit was achieved in the overland business unit in the second quarter of 2016.
Compared to the first six months of the previous year, the net turnover increase of 6.9 percent outperformed market growth. Gross profit improved by 7.4 percent compared to the previous year and EBIT from CHF 56 to CHF 70 million.