Kuehne+Nagel earnings halved
Logistics major Kuehne+Nagel is still grappling with the challenging market environment reflected in its results for the third quarter of the year. The company posted a 53 per cent drop in earnings in the third quarter, compared to the corresponding period of 2022, while year-to-date figures are 49 per cent below those of 2022.
Kuehne+Nagel posted a profit of CHF 1.18 billion ($1.3 billion) for the first three quarters of the year, half the profit reported for the same period last year ($2.6 billion). Profit for the third quarter reached CHF 321 million ($359.1 million), well below the profit of CHF 688 million ($769.6 million) reported in Q3, 2022.
The company noted that the pandemic-related special economic situation of 2021 and 2022 continued to distort the year-on-year comparison of all key figures.
Net turnover in the first nine months of 2023 was CHF 18.2 billion ($20.3 billion) at the Group level, EBIT was CHF 1.6 billion ($1.78 billion). The conversion rate, which describes the ratio of EBIT to gross profit of the Group, remained at a high level of 24 per cent.
“The Kuehne+Nagel Group performed well in the third quarter of 2023, even though the hoped-for economic recovery failed to materialise. We gained market share and secured our yields. We achieved important successes in the implementation of the strategic Roadmap 2026, particularly in the area of renewable energy and in the growth markets of Asia. In the final quarter of 2023, we will continue to focus on cost control, which is firmly embedded in our corporate culture,” said, Stefan Paul, CEO of Kuehne+Nagel International AG.
NEOM deal adds to Sea Logistics volume growth
Net turnover in the business unit Sea Logistics amounted to CHF 6.8 billion ($7.6 billion) with EBIT of CHF 875 million ($978.8 million) in the first nine months of 2023. The conversion rate remained at a high level of 47 per cent.
Container volumes stood at 3.2 million TEU through the end of September 2023. In an overall market that continued to decline, Kuehne+Nagel Sea Logistics recorded slight volume growth in the third quarter of 2023, which intensified in September. Market share gains were mainly on the Asia-Europe and Trans-Pacific routes.
In August 2023, Kuehne+Nagel Sea Logistics announced a major project as part of the Saudi project NEOM. By 2025, Kuehne+Nagel will transport 1.4 million tonnes of equipment for the construction of wind turbines on behalf of Envision Energy.
Net turnover in the business unit Air Logistics was CHF 5.0 billion ($5.6 billion) and EBIT CHF 429 million ($479.9 million) in the first nine months of 2023.
Net turnover of the business unit Road Logistics amounted to CHF 2.7 billion ($3.02 billion) with EBIT of CHF 119 million ($133.1 million) in the first nine months of 2023. The processed order volume was around 17.4 million.
The economic slowdown in core markets, especially in Europe, affected shipment volumes in the third quarter of 2023, Kuehne+Nagel said.