OREANDA-NEWS. In the first half year of 2017, the Kuehne + Nagel Group gained market shares in all business units and accelerated its growth momentum during the second quarter. Net turnover increased by 8.2 per cent to CHF 8,815 million compared to the previous year’s period and gross profit grew by 3.7 per cent to CHF 3,377 million. The operational result (EBITDA) improved by 1.3 per cent to CHF 554 million and with CHF 356 million earnings for the period reached last year’s level.
  • Significant market share gains in seafreight and particularly in airfreight
  • Substantial increase in overland result
  • Improved gross profit and operational result in contract logistics
  • Earnings for the period at CHF 356 million  

Kuehne + Nagel Group

First half-year 2017

First half-year 2016

CHF million

    

Net turnover

8,815

8,147

Gross profit

3,377

3,257

Operational result (EBITDA)

554

547

EBIT

452

455

Earnings for the period

356

356

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: "The result of the first half of 2017 is a clear evidence of our growth-oriented business strategy as well as efficient cost management, which enabled us to counter the ongoing pressure on margins in seafreight and airfreight. The remarkable improvements of results in contract logistics and overland are mainly due to the successful implementation of our market strategies. During the second half of the year, we will continue to focus on volume growth, productivity increases and the scaling of industry-specific solutions."

Seafreight
With a volume increase of 7.7 per cent in seafreight, Kuehne + Nagel grew faster than the market and, in the first half of 2017, handled over 151,000 TEUs more than in the previous year’s period. Kuehne + Nagel gained market shares in all US trades, both import and export. In the Latin American relations and in the reefer container business double-digit growth rates were realised. At the same time, Kuehne + Nagel further increased productivity and cost efficiency. Margins remained under pressure and below the previous year's level, inter alia due to the fierce competitive environment; however, a slight increase compared to the first quarter has been achieved. The EBIT-to-gross profit margin (conversion rate) was at a high level of 28.8 per cent, EBIT amounted to CHF 198 million. 

Airfreight
In airfreight, volume growth accelerated in the second quarter. With an over 18 per cent increase in tonnage in the first half of 2017, Kuehne + Nagel grew about double the market. A strong demand for industry-specific airfreight solutions has made a significant contribution to this positive development. New business was gained particularly in the pharma, aerospace and perishables industries. Strict cost control and productivity increases due to process automation countered the margin pressure and kept the conversion rate stable at 30.6 per cent, reaching previous year’s high level. With CHF 151 million, EBIT improved by 2.7 per cent compared to the previous year.