SWISS global transport and logistics company Kuehne+Nagel (K+N) saw its overall and airfreight profits continue to soar in the first quarter of the year as supply chains remained under pressure and demand continue to improve.
The forwarder reported an increase in airfreight revenues of 91 per cent year on year to CHF3.10 billion (US$3.20 billion) on the back of a 32.6 per cent increase in air volumes to 574,000 tonnes.
Earnings before interest and tax (EBIT) in the air division were up 161 per cent to CHF425 million.
The company benefited from higher rates due to ongoing disruption in supply chains and also its acquisition of Apex logistics, which began to be included in the forwarder's results from May last year, reports London's Air Cargo News.
K+N said that acquisitions had contributed to just over 30 per cent of its airfreight EBIT this year.
'The sudden closure of Russian airspace led to multiple changes in airfreight routes between Asia and Europe,' the company said.
'Together with the overall limited capacities, this led to a significantly higher operational workload in the first quarter of 2022.'
The overall company saw first-quarter revenues increase by 68 per cent year on year to CHF10.2 billion, EBIT was up 160 per cent to CHF1.1 billion and earnings improved by 162 per cent to CHF832 million.
K+N chief executive Detlef Trefzger said: 'Strong demand for capital and consumer goods continued in the first quarter of 2022. In parallel, the already strained supply chain situation deteriorated further.
'K+N was well prepared for this scenario and we were able to reliably meet customer demands for high-quality logistics services.'
Looking ahead, the company said that global GDP growth projections had been weakening at currently stood at 3.5 per cent.
K+N said there were also inflationary pressures triggered by war in Ukraine, inefficient supply chains marked by ongoing network disruption and congestion and that stabilisation is dependent on consumption patterns and infrastructure investments.
SeaNews Turkey
The forwarder reported an increase in airfreight revenues of 91 per cent year on year to CHF3.10 billion (US$3.20 billion) on the back of a 32.6 per cent increase in air volumes to 574,000 tonnes.
Earnings before interest and tax (EBIT) in the air division were up 161 per cent to CHF425 million.
The company benefited from higher rates due to ongoing disruption in supply chains and also its acquisition of Apex logistics, which began to be included in the forwarder's results from May last year, reports London's Air Cargo News.
K+N said that acquisitions had contributed to just over 30 per cent of its airfreight EBIT this year.
'The sudden closure of Russian airspace led to multiple changes in airfreight routes between Asia and Europe,' the company said.
'Together with the overall limited capacities, this led to a significantly higher operational workload in the first quarter of 2022.'
The overall company saw first-quarter revenues increase by 68 per cent year on year to CHF10.2 billion, EBIT was up 160 per cent to CHF1.1 billion and earnings improved by 162 per cent to CHF832 million.
K+N chief executive Detlef Trefzger said: 'Strong demand for capital and consumer goods continued in the first quarter of 2022. In parallel, the already strained supply chain situation deteriorated further.
'K+N was well prepared for this scenario and we were able to reliably meet customer demands for high-quality logistics services.'
Looking ahead, the company said that global GDP growth projections had been weakening at currently stood at 3.5 per cent.
K+N said there were also inflationary pressures triggered by war in Ukraine, inefficient supply chains marked by ongoing network disruption and congestion and that stabilisation is dependent on consumption patterns and infrastructure investments.
SeaNews Turkey
