Kuehne + Nagel Q1 profit off 1.6pc to US$177 million, sales rise 7.7pc
THE world's biggest sea freight forwarder Kuehne + Nagel's net first quarter profit slipped 1
THE world's biggest sea freight forwarder Kuehne + Nagel's net first quarter profit slipped 1.6 per cent year on year to CHF181 million (US$177 million), drawn on revenues of CHF5.23 billion, which increased 7.7 per cent.
'Kuehne + Nagel got off to a good start in 2019.' said CEO Detlef Trefzger. 'We increased our net turnover, gross profit and EBIT. However, we find ourselves in an environment in which global economic growth is noticeably slowing.'
Kuehne + Nagel also strengthened its position as the global market leader in sea freight with 6.2 per cent growth in volume in the first quarter, moving 1.14 million TEU - 70,000 units more year on year.
Cargo movement from North America and Europe to Asia fell from to three per cent, reflecting the import restrictions on recycled materials and agricultural products.
Kuehne + Nagel, however, was able to achieve a double-digit volume increase of Asian exports to North America and Europe. EBIT reached CHF112 million. The EBIT-to-gross-profit ratio (conversion rate) grew to 29.3 per cent (previous year: 27.2 per cent).
Following significant increases in tonnage in the previous years, the air freight volume dropped 3.1 per cent to 409,000 tonnes in the first quarter of 2019 against the backdrop of a declining market.
The department's performance was nearly in line with the overall air freight market, which declined by two to three per cent.