Kuehne + Nagel reported “excellent performance” in the air freight sector for the first half of 2015, which helped the global logistics giant to post a 4.2 per cent rise in net earnings for the period to CHF 326 million (US$341.5 million), compared to the same period in 2014. This was despite a negative currency impact of 7.3 per cent, the group said, while noting that revenue fell 3.2 per cent compared with the first half of 2014, to CHF 8.23 billion.
Commenting on the results, Detlef Trefzger, CEO of the Kuehne + Nagel International AG said: “Given the demanding market environment and currency volatilities, we are very pleased about the development of our results in the first half of 2015. The solid performance in sea freight and the increased profitability in airfreight are to be highlighted. Due to our proven business model and the consistent implementation of our global strategy, we were able to increase the earnings for the period despite the stronger Swiss Franc.”
The global logistics firm grew faster than the market with a 5.2 per cent increase in airfreight tonnage, to 610,000 tonnes. Significant volume increases were realised in exports from Europe, North America and Asia, it said. In addition, the expansion of services for customers from the segments perishables, pharma and industrial goods contributed to the favourable development.
Air freight earnings before interest and tax (EBIT) increased in comparison to the previous year’s period by 11.5 per cent.
The group’s contract logistics business did not fair quite as well with volume reductions in existing business with customers in Western Europe and the restructuring of customer businesses in the United Kingdom negatively affected the results.
Furthermore, the strong Swiss Franc influenced the development of net turnover and gross profit disproportionally in comparison to other business units of the Group, it said. EBIT decreased by CHF14 million to CHF56 million.
“In the first half of 2015 the increased profitability confirmed the strength of the Kuehne + Nagel Group and the diversified service portfolio supported growth, especially in airfreight. Therefore we are confident regarding the further development, although the macroeconomic environment deserves close attention,” commented Karl Gernandt, chairman of the Board of Directors of Kuehne + Nagel International AG.