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Kuehne + Nagel H1 y-o-y profit rises 9pc to US$362 million

SWISS-HEADQUARTERED logistics firm Kuehne + Nagel Group has posted half-yearly earnings of CHF356 million (US$362 million), an increase of 9 per cent from last year's earnings of CHF326 million for same period in 2015.

Net turnover slightly decreased to CHF8.15 billion in the first six months of 2016 from CHF8.23 billion in the period last year. The group's gross profit grew by 8 per cent to CHF 3.3 billion while operating result (EBITDA) grew by 10 per cent to CHF 547 million.

CEO of Kuehne + Nagel International AG, Dr Detlef Trefzger, said: "The first half of 2016 has been shaped by different regional economic development trends. Global trade showed a lack of growth momentum. Our strategy to focus on organic growth and gaining market shares by offering industry-specific solutions once again led to increases in volumes and results. Our Group delivered a strong performance and has significantly improved gross profit, and therewith increased profit."

Kuehne + Nagel's seafreight business continued to grow and, for the first time, succeeded in handling over one million TEU in one quarter. Compared to the first six month of the previous year, the group increased its container volume by 5.8 per cent. This growth was well above market average and was mainly due to larger volumes in the export business from Asia to Europe and the US.

Despite shrinking demand and excess capacity in the global airfreight market resulting in margin pressure, Kuehne + Nagel managed to increase its tonnage by 2.9 per cent in the second quarter of 2016. This was mainly due to the expansion of customer-specific services and industry solutions. Strong export business in Asia, the Middle East and Africa contributed equally to this development. Compared to the first six months of the previous year, Kuehne + Nagel increased tonnage by 1.3 per cent.

Substantial growth in net turnover and gross profit was achieved in the overland business unit in the second quarter of 2016. Compared to the first six months of the previous year, net turnover improved by 22.6 per cent and gross profit by 12.6 per cent. EBIT increased from CHF14 million to CHF17 million.

The successful implementation of new businesses in contract logistics accelerated in the second quarter of 2016. As a result, gross profit increased by 9.7 per cent in this period versus 5.1 per cent in the first quarter of 2016. Compared to the first six months of the previous year, the net turnover increase of 6.9 per cent outperformed market growth. Gross profit improved by 7.4 per cent compared to the previous year and EBIT from CHF56 million to CHF70 million.

Chairman of the board of directors, Dr Joerg Wolle, commented: "In the second quarter, the Kuehne + Nagel Group improved its performance and managed to expand market shares?based on its successful strategic focus, we are confident that we can continue the momentum in volume and profit into the second half of the year from today's perspective."