A successful year for Kühne + Nagel

In the first nine months of this year the Kühne + Nagel Group increased their gross profit by 6.3% to 4,900 million CHF, while net turnover slightly decreased. The operational result (EBITDA) improved by 5.1% to 817 million CHF. The earnings for the same period increased by 4.1% to 533 million CHF compared to the previous year.

With a 4.5% increase in container volumes in the third quarter 2016, Kühne + Nagel grew faster than the market, which increased by 1-2%. Not only the volumes increased at the transpacific and intra-Asian trade lanes, but also reefer transports particularly contributed to the favorable development. The low rates on most of the trade routes continued and the effect of continued takeovers in the shipping industry increased pressure on the margins. The gross profit per TEU decreased by 4.4% in the third quarter.

Compared to the first nine months of the previous year, Kühne + Nagel expanded its container volume by 5.4% and gross profit rose by 4.3% and the EBIT-to-gross profit margin remained high at 31.8% (previous year: 32.7%). EBIT improved by 1.5% to 340 million CHF.

The global airfreight market remained tense in the third quarter and pressure on margins continued, due to shrinking demand and the capacity continued to increase. Despite these developments Kühne + Nagel increased their share with 3.8% and gross profit per 100 kilos by 1.4%, mainly due to the industry-specific solutions.

Compared to the first nine months of the previous year, Kühne + Nagel increased its volume by 2.2%. Gross profit rose by 6.4% and the EBIT-to-gross profit margin remained at last year’s high level, 30.7% (2015: 30.0%). EBIT improved by 8.9% to 220 million CHF. 

The growth momentum of the overland traffic business unit continued and the turnover and gross profit continued to increase. Business developed particularly well in Europe, whilst slowing down in the USA due to the development of transport costs.

Compared to the first nine months of the previous year the net turnover increased with 16.9% and gross profit by 9.4%. EBIT improved by 5.9% to 18 million CHF. 

Kühne + Nagel’s won new contracts through their ability to offer scalable end-to-end solutions to customers in the automotive, high-tech, pharmaceutical and consumer goods industries. The successful implementation of new projects continued, leading to an increase of 4.4% in gross profit in the third quarter. 

Compared to the first nine months of the previous year the net turnover rose by 5.2%, outperforming market growth. Gross profit increased by 6.4% compared to the previous year and EBIT improved from 86 million CHF to 100 million CHF.

Dr. Detlef Trefzger, CEO of Kühne + Nagel International: “Cautious consumer behavior in parts of the EU and the USA resulted in lower export volumes in Asia. Furthermore tougher situation in the shipping industry increased the pressure on sea freight margins. By maintaining our focus on industry-specific logistics solutions and high-quality services, we succeeded in achieving growth and stable results, despite the demanding environment. We are confident about the developments in the fourth quarter of 2016.”

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