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Kuehne + Nagel profit flat at US$370.8 million, but revenue rises 9.2pc
SWISS forwarding giant Kuehne + Nagel, ranked No 2 behind Germany's DHL posted a flat first half profit of CHF356 million (US$370.8 million) drawn on CHF8.8 million, representing an 9.2 per cent year on year increase in revenue.
"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 sea freight and air freight," said CEO Detlef Trefzger.
"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," said Dr Trefzger.
With a volume increase of 7.7 per cent in sea freight, Kuehne + Nagel grew faster than the market and, in the first half of 2017, handled over 151,000 TEU more than in the previous year's period, said the company statement.
"Kuehne + Nagel gained market share 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," said the company statement.
At the same time, Kuehne + Nagel said it increased productivity and cost efficiency. "Margins remained under pressure and below the previous year's level, inter alia due to the fierce competitive environment," it said.
During the first six months of 2017, net turnover increased by 3.3 per cent and gross profit by 3.5 per cent, compared to the previous year.
This was driven by higher volumes for groupage, full truckload and intermodal shipments mainly in Europe and the US, and strong order intakes for industry-specific services.
Said Kuehne + Nagel chairman Joerg Wolle: "The half-year results of 2017 reflect the continuous strength, which make us confident for its further development despite that sea freight and airfreight markets can be expected to remain demanding and volatile."
He said Kuehne + Nagel remains committed to its proven strategy and continues to invest in growing markets and industry segments.
"With acquisitions, as the ones announced today, we are ideally complementing our organic growth and strengthen our position in a still fragmented market," he said.
"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 sea freight and air freight," said CEO Detlef Trefzger.
"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," said Dr Trefzger.
With a volume increase of 7.7 per cent in sea freight, Kuehne + Nagel grew faster than the market and, in the first half of 2017, handled over 151,000 TEU more than in the previous year's period, said the company statement.
"Kuehne + Nagel gained market share 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," said the company statement.
At the same time, Kuehne + Nagel said it increased productivity and cost efficiency. "Margins remained under pressure and below the previous year's level, inter alia due to the fierce competitive environment," it said.
During the first six months of 2017, net turnover increased by 3.3 per cent and gross profit by 3.5 per cent, compared to the previous year.
This was driven by higher volumes for groupage, full truckload and intermodal shipments mainly in Europe and the US, and strong order intakes for industry-specific services.
Said Kuehne + Nagel chairman Joerg Wolle: "The half-year results of 2017 reflect the continuous strength, which make us confident for its further development despite that sea freight and airfreight markets can be expected to remain demanding and volatile."
He said Kuehne + Nagel remains committed to its proven strategy and continues to invest in growing markets and industry segments.
"With acquisitions, as the ones announced today, we are ideally complementing our organic growth and strengthen our position in a still fragmented market," he said.
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