Kuehne + Nagel profit up 4.3pc to US$774.1 million as sales rise 11.7pc
SWISS logistics giant Kuehne + Nagel increased 2018 net profit 4
SWISS logistics giant Kuehne + Nagel increased 2018 net profit 4.3 per cent year on year to to CHF772 million (US$774.1 million), drawn on revenues of CHF24.8 billion, up 11.7 per cent, the company announced.
'Despite the market weakening at the end of the year, we succeeded in increasing our turnover and profit once again,' said Kuehne + Nagel CEO Detlef Trefzge.
'The consistent implementation of our business strategy was decisive. By introducing additional digital platforms, with new highly specialised solutions and targeted acquisitions, we reached important milestones,' said Dr Trefzge.
With a 7.7 per cent growth in volume, the company said sea freight gained market share and strengthened its position as the global market leader. The company handled 4.7 million TEU last year, representing an increase of around 335,000 TEU.
'Strong growth was recorded in the Asia-Europe trade and in US imports, particularly from Asia. In addition, intra-Asian trade lanes grew again last year,' said the Kuehne + Nagel statement.
With three alliances and seven carriers in the market, the supply of capacity impacted margins which varied substantially, depending on region, trade lane and product.
While the margins in European exports were under considerable pressure, those in Asia-Europe trade were growing.
The company increased its air cargo tonnage by 11 per cent to 1.7 million tons, thereby achieving significantly higher growth than the overall market. Industry-specific solutions for the pharma and healthcare and aviation industries played an important role in this growth.
The company achieved significant increases in overland freight in net turnover, gross profit and EBIT. Net turnover grew by 13.1 per cent and gross profit by 14.3 per cent. EBIT improved by 55.1 per cent year on year.
In contract logistics, Kuehne + Nagel increased net turnover by nine per cent and gross profit by 8.8 per cent. The company grew significantly in the US and Asia.