SWISS forwarding giant Kuehne + Nagel posted a two per cent increase in first quarter year-on-year profit to CHF153 million (US$157.5 million), drawn on revenues of CHF4.09 billion, a decline of 0.75 per cent.
First quarter container volumes were down 0.7 per cent "due to the concentration on profitable business and the unexpected weakness of market volumes in the Asia-Europe trade lanes," said the company statement.
But Kuehne + Nagel succeeded in improving gross profit per TEU by 2.2 per cent as well as the conversion rate from 28.8 per cent in the previous year to 29.0 per cent, raising the segment's pretax profit 2.2 per cent.
Quarterly air freight tonnage was up seven per cent year on year with the company gaining a "significant share of the strong European export business and occasionally in contrast to the market trend, grew volumes from North America and Asia".
Air freight from South America, the Middle East and Africa experienced the same volumes as last year. The conversion rate improved from 28.3 per cent to 30.8 per cent with pretax profit up 9.7 per cent year on year.
But contract logistics slowed due to volume reductions in existing businesses with major customers in Western Europe. The strong Swiss Franc affected the revenue and profits negatively.
"Structural changes and price negotiations with contract logistics customers in Western Europe as well as the built-up of resources for organic growth impacted the result negatively, said the company statement.
Said CEO Detlef Trefzger: "The development of our results is positive, considering the decreasing import flows of goods to Europe due to the weakness of the Euro. In addition, the strong Swiss Franc negatively affected the result."
WORLD SHIPPING
15 April 2015 - 20:24
Kuehne + Nagel profit up 2pc to US$157.5 million as revenue slips 0.75pc
SWISS forwarding giant Kuehne + Nagel posted a two per cent increase in first quarter year-on-year profit to CHF153 million (US$157.5 million), drawn on revenues of CHF4.09 billion, a decline of 0.75 per cent.
WORLD SHIPPING
15 April 2015 - 20:24
Kuehne + Nagel profit up 2pc to US$157.5 million as revenue slips 0.75pc
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