Careful business management keeps Kuehne + Nagel group ‘on the right track’
Swiss freight forwarder Kuehne + Nagel (K+N) has changed its marine cargo business on US imports to alleviate the impression of slowing down European imports from Asia.
The largest marine cargo forwarder of the world oppressed growing chances in the US import business from Europe and Asia and increased its gross profit per teu by 4.4 percent on the same period of 2014, to Sfr364 per teu, returning an 11.7 percent rise in sea cargo earnings before interest and tax (Ebit) to Sfr335m.
On the other hand, feeble markets took their toll on the sea cargo zone, with amount over the three quarters decreasing 1.1 percent year-on-year. Altogether, it accepted 2.85m teu in the period.
In the first nine months of the year, operative result of Kuehne + Nagel upgraded by 4.6 percent on the year before to Sfr777m ($811m) and net earnings improved by 6.7 percent to Sfr512m from Sfr480m in the first nine months of previous year 2014. The profit progress arose in spite of revenue falling to Sfr12.4bn from Sfr13bn the year before, proposing tighter cost management.
According to the company the decreased revenue was mainly due to improved power of the Swiss franc against the euro. Meanwhile, in its air cargo zone, K+N raised volumes by 5.1 percent in the period, as compared with the first nine months of the year 2014, in what it called as a decaying market.
Air cargo Ebit developed by 11 percent to Sfr202m in the period. Kuehne + Nagel laid this trend bucking performance depressed to an improved demand for expert services in the motorized, pharmaceuticals, aerospace and perishables sections.
According to K+N its lowest business division, trucking showed a constant result. However, revenue was decreased 12.1 percent due to the suspension of project business and low rates from low-cost diesel prices it was grateful to pass on to its customers.
Its purchase of US-based ReTrans in August would support the market situation of Kuehne + Nagel as a united logistics provider in North America. According to K+N chief executive Detlef Trefzger in the third quarter k+N developed more results, particularly in marine cargo and air cargo. The performance in the first nine months approves the market strategy of K+N and it shows that K+N group is on the exact path.
