Kuehne + Nagel announce Q1 2016 results

Kuehne + Nagel

The Kuehne + Nagel Group have released Q1 2016 results with net turnover of CHF4,010m. This represents a decline of 2.09% compared with the same period last year. EBITDA for the period was reported as CHF259m, representing an increase of 11.16% year-on-year. Consequently, margins for the period stood at 6.46%.

The Group attributed the decline in net turnover to stagnant growth in the air freight division which resulted in volume declines towards the end of the quarter. Consequently, net turnover in the Group’s Airfreight segment declined compared to the same period last year. In addition, despite a reported 6% increase in container volume, the Group’s Seafreight segment also recorded a decline in turnover. Kuehne + Nagel’s Overland segment saw net turnover increase 18.4% year-on-year.

In Seafreight, Kuehne + Nagel expanded its container volume by 6%, whilst the international sea freight market grew by around 1%. Gross profit per TEU rose by 1.4% and the EBIT-to-gross profit margin (conversion rate) from 29.0% in the previous year to 30.7%. EBIT increased by 13.8%.

Kuehne + Nagel announced declines in the Group’s Airfreight segment were attributed to lack of growth in the global air freight market which resulted in a decline in volumes for the Group. The decline in net turnover from the Airfreight segment year-on-year was also attributed to an unexpected volume increase in Q1 2015 due to a temporary shift of goods from sea to air freight as a consequence of the harbour strike on the US West Coast. For Q1 2016, Kuehne + Nagel reported strong export business in Asia, the Middle East and Africa consequently managing to keep overall tonnage stable at the previous year’s level.

In the Group’s Overland segment, during the first three months of 2016, net turnover increased by 18.4% compared to the previous year, exceeding market growth. According to the announcement, this growth can be attributed to the good performance of the American ReTrans Group, which was acquired in 2015 as well as to the solid development of activities in the European overland business. However, growth ambitions in several emerging markets could not be achieved in the first quarter of 2016 due to the economic situation. EBIT remained stable at CHF4m.

In the first quarter 2016, the Group announced that new business for the Contract Logistics segment was implemented in Asia, Europe and the US. Compared to the previous year’s period, net turnover rose by 6.4%. EBIT for the segment increased from CHF24m IN Q1 2015 to CHF3m in Q1 2016, an increased attributed to operational improvements and the stabilisation of drinks logistics in the UK.

Detlef Trefzger, CEO of Kuehne + Nagel International AG, said, “The result of the first quarter 2016 confirms the successful implementation of our Group strategy. We consider our market proximity and our understanding of current and future customer requirements as a solid basis for the further, positive development of our business.”

Source: Kuehne + Nagel