K+N increases operational result by 48%
PRESS RELEASE – In the first nine months of 2019, Kuehne + Nagel significantly improved its results. The company’s turnover increased by 3.1% to EUR 14.4 billion, while the operational result grew by 48% to to EUR 1.2 billion. Net profit amounted to EUR 543 million.
Seafreight and Overland continued their momentum, although the tense market environment led to a decline in airfreight volumes. The restructuring in Contract Logistics showed the first results.
“Against the backdrop of consistently tense global markets, Kuehne + Nagel once again delivered very solid results. In Seafreight and Overland in particular, our focus continued to be on customer service, cost efficiency and digitalisation. In the more volatile Airfreight business, earnings remained stable over the past quarters, with the acquisition of Quick having had a sustained positive impact”, CEO Detlef Trefzger of Kuehne + Nagel says.
In the sea freight market, Kuehne + Nagel grew significantly and transported 3.67 million TEU, 152,000 units more than in the same period of last year (+4.3%).
The airfreight market continued to decline in an environment of global economic uncertainty and rising trade barriers. As a result of the sharp drop in demand in some key industries, Kuehne + Nagel’s airfreight volume fell by 6.4% year-on-year to 1.22 million tonnes. Still, the business unit was able to significantly increase gross profit, especially in the areas of pharma & healthcare, perishables and time-critical shipments.
The ongoing restructuring of the Contract Logistics department, which includes the transport of project cargo for the energy and mining industries, yielded results, according to the company. Due to portfolio optimisation measures and a focus on higher-margin business, net turnover increased by 3.5% year-on-year to EUR 3.6 billion and gross profit by 2.1% to 2.7 billion.