KUEHNE + NAGEL Group has announced that full-year 2012 net earnings decreased to CHF493 million (US$523.4 million), although volumes were up across all business units.
Falling profit margins, cost increases and a CHF65 million (US$69 million) anti-trust fine imposed by the European Commission last March were blamed.
Revenue increased 5.9 per cent year on year to CHF20.75 billion and gross profit went up 3.3 per cent to CHF6.09 billion. The operational result (EBITDA) declined by 5.8 per cent against 2011 to CHF921 million, including the antitrust fine to CHF856 million.
"Already in the first two quarters volume development in the international logistics industry suffered from the slowdown of growth in China and restrained consumer and investment spending in large parts of Europe," said departing CEO Reinhard Lange.
"With the worsening of the sovereign debt crisis in the eurozone in the second half of the year, the economic climate deteriorated rapidly, and the decline of the European imports and exports influenced the trade with the emerging countries in Asia and South America more strongly," he said.
"Overcapacity, unprecedented rate volatility and strong pressure on profit margins were the results of this development," he said, adding that the company was not able to compensate margin pressure and higher costs with the volume growth achieved, resulting in poorer performance than the previous year.
Looking at the various business units, containerised sea freight volumes rose six per cent year-on-year to 3.5 million TEU versus an average two per cent growth in the international container market last year.
It said that export volumes on the trades from Asia to north and south America and to the Middle East increased "considerably" on the contrary to dropping market demand. In the Asia-Europe trade volumes decreased slightly compared to the previous year, while double-digit growth rates were realised on the routes from North America and Asia to South America.
Sales of sea freight services for special products were said to be successful, for instance in the reefer container business and in drinks logistics. But the high productivity of the oil and gas and projects sector failed to compensate for margin pressure and cost increases.
It also managed to raise air freight tonnage by two per cent compared to the previous year. The best performers were intra-Asia traffic, and exports from Asia to North and South America. In Europe, however, the company "could not counter the prevailing negative trend and suffered a volume decline". EBITDA decreased by 9.1 per cent (excluding antitrust fine).
With regard to the settlement of anti-trust fines to the EU Commission, the case dates back to 2007 when a series of transportation and logistics companies were since found to have been involved in an international air freight price-fixing cartel. The company is appealing against the decision before the European Court of Justice.
SHIPPING NEWS
05 March 2013 - 20:11
K+N profit falls to US$523 million on higher costs, EU anti-trust fine
KUEHNE + NAGEL Group has announced that full-year 2012 net earnings decreased to CHF493 million (US$523.4 million).
SHIPPING NEWS
05 March 2013 - 20:11
K+N profit falls to US$523 million on higher costs, EU anti-trust fine
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