The Kuehne + Nagel Group reported improved results in the third quarter of 2012 due to volume increases in seafreight and airfreight and greater attention to cost management. Compared to the previous year’s third quarter, revenues grew by 12.4 per cent and gross profit by 6.9 per cent. Earnings before interest, taxes, depreciation and amortization (EBITDA) improved by 3.1 per cent in the third quarter 2012 compared to the previous year’s period.
During the first nine months of 2012, revenues increased by 6.0 per cent to CHF 15,471 million and gross profit by 4.0 per cent to CHF 4,557 million compared to the same period of 2011. EBITDA declined by 5.6 per cent to CHF 687 million. Excluding the EU antitrust fine in the first quarter, net earnings declined by 7.4 per cent to CHF 423 million.
During the first nine months of 2012, Kuehne + Nagel increased container volumes by 7 per cent. In the third quarter, market growth slowed down substantially in most trade lanes; in the Asia-Europe traffic, for instance, volumes declined by more than 10 per cent. Kuehne + Nagel was affected by this negative development, but managed to increase its overall volumes by 6 per cent in the third quarter of 2012. Gross profit margin remained stable despite considerable volatility of rates.
In the international airfreight market, demand continued to be flat in the third quarter of 2012. Contrary to this industry trend, Kuehne + Nagel increased its airfreight tonnage by 3 per cent in the third quarter, and by 2 per cent in the first nine months of 2012. Kuehne + Nagel leveraged business opportunities particularly in the Intra-Asian traffic and in the South and North American export markets, and performed well in its targeted industry segments.
Road & Rail Logistics
Volume declines due to seasonality and adverse macroeconomic market conditions, especially in Southern Europe, temporarily disrupted positive business conditions in the European overland business that prevailed during the first half of the year. Nevertheless, Kuehne + Nagel increased net revenues by 8.2 per cent during the first nine months of the year. Compared to the previous year’s period, EBITDA decreased by 9.7 per cent.
In contract logistics, results have stabilised during the third quarter due to the closure of non-profitable locations and other remedial measures Net revenues increased by 3.8 per cent during the first nine months of 2012, and EBITDA at 3.6 per cent remained unchanged from the previous year’s level.
The improvement in third quarter results makes us confident of reaching the profitability targets that we set for ourselves for the full year,” said Reinhard Lange, CEO of Kuehne + Nagel International AG. “Intensified cost management as well as a continuous improvement of the services for our customers will be the foundation for profitable growth.”