The Kuehne + Nagel Group reported revenues of CHF 5.094 billion for the three months ended March 31, 2013, representing an increase of 5.4 per cent compared to the same period of 2012. Gross profit improved by 2.3 per cent to CHF 1.537 billion and at CHF 219 million, EBITDA exceeded the previous year’s level. Net earnings rose to CHF 134 million from CHF 68 million.
In a soft market environment, Kuehne + Nagel Group concentrated on improving internal efficiency and profitability.
Seafreight
Kuehne + Nagel increased its container volume by 2.3 per cent. In the trades from Europe to Asia, Kuehne + Nagel suffered a volume decline and experienced only moderate growth in Asia to Europe trades. On most other routes, however, volume increases of between 5 and 10 per cent were realised. With measures taken to streamline costs, EBIT-to-gross profit margin (28.6 per cent / previous year: 28.3 per cent) and EBITDA are expected to improve.
Airfreight
In airfreight, Kuehne + Nagel succeeded in increasing its volumes by approximately 5 per cent, thus gaining market share in a market that declined by 2 per cent. In addition to increased Asian export business, the company experienced moderate outbound European tonnage increases. Cost containment measures and productivity improvements led to an increase of EBIT-to-gross profit margin from 23.5 to 24.2 per cent. EBITDA improved by 9.3 per cent compared to the previous year.
Contract Logistics
Restructuring measures in the contract logistics business unit showed very positive effects, with EBITDA increasing from 3.1 per cent to 3.8 per cent.
Road & Rail Logistics
Difficult economic conditions in Europe negatively impacted results, as did adverse weather conditions throughout the first quarter. Overall, EBITDA decreased from CHF 14 million in the previous year’s period to CHF 2 million during the first quarter of 2013.
Karl Gernandt, Chairman of Kuehne + Nagel International AG commented that “Particularly in view of the poor economic conditions in the eurozone, which also poses challenges for our company, we can be quite satisfied with the results of the first quarter 2013. The measures introduced to increase efficiency and improve profitability are working effectively, underlined by the performance of the business units airfreight and contract logistics. We will continue to focus on margin and cost management and are therefore confident to achieve further improvements. Growth opportunities will arise mainly in regions outside of Western Europe. In the first quarter 2013, we have seen positive developments particularly in North America, Middle East, Eastern Europe and South Asia.”