SWISS forwarding giant Kuehne + Nagel increased year-on-year profit CHF533 million (US$537.3 million) in the first nine months of the year, drawn on revenues of CHF12.2 billion, which fell 1.2 per cent.
Sea freight increased 4.5 per cent in container volume in the third quarter, and Kuehne + Nagel again outperformed market growth of one to two per cent, the company said.
The low rate levels in most of the trade lanes continued and the impact of the further consolidation of the shipping industry increased pressure on the margins, it said.
Compared to the first nine months of the previous year, Kuehne + Nagel expanded its container volume by 5.4 per cent.
Global air freight market remained tense in the third quarter and pressure on margins continued due to shrinking demand and further capacity increases, said the company.
Against this trend, Kuehne + Nagel grew its tonnage by 3.8 per cent and gross profit per 100 kilos by 1.4 per cent, mainly due to further scaling its industry-specific solutions.
Compared to the first nine months of the previous year, Kuehne + Nagel increased its volume by 2.2 per cent.
In the overland business unit, growth momentum in turnover and gross profit from the previous quarters continued. Business developed particularly well in Europe, while slowing in the US.
Compared to the first nine months of the previous year, net turnover increased by 16.9 per cent and gross profit by 9.4 per cent. EBIT improved by 5.9 per cent to CHF 18 million.
New contracts have been won through Kuehne + Nagel's ability to offer scalable end-to-end solutions to customers of the automotive, high-tech, pharmaceutical and consumer goods industry, the company said.
"Cautious consumer behaviour in parts of the EU and the USA resulted in lower export volumes in Asia," said CEO Detlef Trefzger
In addition, the tougher situation in the shipping industry increased pressure on sea freight margins. By maintaining our group's focus on industry-specific logistics solutions and high-quality services, we succeeded in achieving growth and stable results."