K+N's Q3 turnover dips slightly but EBIT surges 16pc to US$282m
KUEHNE + NAGEL's third-quarter earnings before interest and tax (EBIT) stood at CHF283 million (US$287
KUEHNE + NAGEL's third-quarter earnings before interest and tax (EBIT) stood at CHF283 million (US$287.2 million), representing a year-on-year increase of 16 per cent, however, net turnover was down 1.1 per cent to CHF5.23 billion.
In the first nine months of the year net revenue rose by 3.1 per cent year on year to CHF15.8 billion, while EBIT was up 6.6 per cent to CHF794 million. The Swiss forwarder said organic net turnover growth amounted to 4.3 per cent, reported American Shipper.
Kuehne + Nagel International AG's CEO Detlef Trefzger said the air freight unit had faced 'volatile' markets with net turnover and EBIT down 2.6 per cent and 3.0 per cent, respectively, over the first nine months of the year.
'The air freight market continued to decline in an environment of global economic uncertainty and rising trade barriers,' added a statement. 'As a result of the sharp drop in demand in some key industries, Kuehne + Nagel's air freight volume fell by 6.4 per cent year on year to 1.22 million tonnes.'
The sea freight unit recorded a year-on-year increase of 7.3 per cent to CHF5.6 billion in the first nine months, with EBIT up 10.2 per cent to CHF357 million.
'Sea freight posted a very solid net turnover growth and once again improved its performance in the third quarter,' said a K+N statement.
'Kuehne + Nagel grew significantly in a stagnating overall market and, with 3.67 million TEU, the group transported 152,000 units more than in the same period of last year (up 4.3 per cent).'
The company said the main success drivers of its sea freight unit were a 'selective growth strategy' and 'effective cost management'.
Between January and September, net turnover in K+N's overland unit grew by two per cent year on year to CHF2.7 billion and EBIT rose by 8.8 per cent to CHF62 million.
The company said: 'Groupage shipment volumes in France and Germany remained firm. In Austria and Eastern Europe, Kuehne + Nagel strengthened the overland transport network with the acquisition of the Jobstl Group.'
In North America, K+N said key accounts remained the biggest growth driver, while the intermodal business further weakened on the back of declining oil prices.
K+N continues to restructure its contract logistics unit and this yielded related one-off profits from real estate sales totalling CHF23 million in the third quarter. As a result, unit EBIT grew by 20.4 per cent over the first nine months to CHF112 million.