Kuehne + Nagel 2011 net profit rises 12.2pc to record US$660 million
SWISS forwarding giant Kuehne + Nagel has posted a 12.2 per cent year-on-year increase in net profit in 2011, achieving a record high of CHF606 million (US$660 million) despite a 3.3 per cent decline in revenue to CHF19.9 billion. Wednesday, 18.Apr.2012, 01:42 (GMT+3)
SWISS forwarding giant Kuehne + Nagel has posted a 12.2 per cent year-on-year increase in net profit in 2011, achieving a record high of CHF606 million (US$660 million) despite a 3.3 per cent decline in revenue to CHF19.9 billion.
In sea freight, the company achieved 11 per cent growth over the year, with the number of container units hitting three million for the first time, said the annual report.
In air freight, Kuehne + Nagel recorded an increase of 13 per cent in tonnage year on year. "The outstanding performance is based on the targeted expansion - accelerated by acquisitions - of perishables logistics activities and the successful provision of industry-specific air freight solutions," said the annual report.
Also, groupage activities were boosted by the acquisition of RH Freight, leading to a 10 per cent market volume growth, which was attributable to a growth in the full and part load and industry-specific distribution segments.
"Improvements in efficiency are expected from the further increase in the density of the overland network in 2012, the start-up of the Eurohub in Bad Hersfeld and the further standardisation of IT systems," said the chairman Reinhard Lange in the annual report.
Mr Lange said Europe performed well despite the debt crisis. "Germany recorded an outstanding development of turnover and earnings. The results of the national companies in Italy, Spain and Portugal were satisfactory."
In North America, Kuehne + Nagel restructured its contract logistics business unit, which led to better results, and its international forwarding business continued to expand despite the slowdown of economy.
In South America, the group's investments and expansion, such as in Brazil and Colombia, contributed "over-proportionally from the region's dynamic economic development and achieved a substantial improvement in volume and earnings in relation to the preceding year."
Middle East business was adversely affected by civil strife, but the group was able to maintain 2010 business levels.
In 2012 the Kuehne + Nagel Group plans to invest CHF155 million in Europe, CHF22 million in the Americas, CHF22 million in Asia Pacific and CHF19 million in the Mideast, Central Asia and Africa.