Logistics major Kuehne+Nagel posted a slip in earnings for the first six months of the year, compared to the corresponding period of 2022. The company noted that the results remain solid despite the challenging market during the first half of the year.  

The pandemic-related special economic situation in 2021 and 2022 continued to distort the year-on-year comparisons across the entire range of figures.

Net earnings reached $989.5 million (CHF 860 million) during the period, slipping 47.2 per cent from the first six months of 2022, when the company reported net earnings of $1.9 billion (CHF 1.6 billion).

Net turnover for the first six months of 2023 was $12.7 billion (CHF 12.7 billion), EBIT was approximately $1.2 billion (CHF 1.1 billion).

Commenting on the results, CEO of Kuehne+Nagel International, Stefan Paul, said, “Kuehne+Nagel coped well with the transition from the exceptional economic situation shaped by the pandemic. In a weakened economic environment, Sea and Contract Logistics gained market share and kept earnings stable. In contrast, volumes in Air Logistics declined broadly in line with the market. While our ongoing cost control efforts became more visible in the second quarter of 2023, our strategic path is unchanged with a focus on high-quality logistics services and an extraordinary customer orientation.”

Contract Logistics the bright spot in Kuehne+Nagel business units

Across its separate sectors, Kuehne+Nagel saw some slips in net turnover during the period under review. Sea Logistics net turnover slipped 51 per cent. However, container volume in the first half of 2023 was 2.1 million TEU, with Sea Logistics gaining share in an overall market that declined by around 5 per cent.

Net turnover of the business unit Air Logistics for the first half of 2023 slipped 44 per cent. The pace of declining volumes eased somewhat in the second quarter. Air freight volume in the first half of 2023 was 957,000 tonnes.

Net turnover in Road Logistics edged down 8 per cent, with processed order volume at around 12 million, comparable to the prior year period, and network utilisation was consistently high. The business unit Contract Logistics delivered a strong result in the first half of 2023 with net turnover of $2.5 billion (CHF 2.5 billion), edging up 3 per cent

The business unit gained market share particularly in North America, in the healthcare and e-commerce sectors. The utilisation of Kuehne+Nagel’s logistics space remained at a very high level.

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne+Nagel International, said, “In the first half of 2023, the Kuehne+Nagel Group’s financial results were significantly greater than the comparable figures of the pre-Corona period and the Group has performed well in the new environment. In the coming years, Roadmap 2026 will remain the key driver of Kuehne+Nagel’s strategic development. The program, launched in March 2023, was very positively received both internally and externally and we are already seeing the first successes. Our focus remains on the provision of high-margin services and the development of market potential in Asia, Africa and the Middle East.”