Stable results and volume growth in all business units.
In the first nine months of 2016 the Kuehne + Nagel Group increased gross profit by 6.3 per cent to CHF 4,900 million while net turnover slightly decreased. The operational result (EBITDA) improved by 5.1 per cent to CHF 817 million. Earnings for the period increased by 4.1 per cent to CHF 533 million compared to the previous year's period.
Kuehne + Nagel GroupJanuary to September
2016
2015
CHF million
Net turnover
12,247
12,426
Gross profit
4,900
4,609
Operational result (EBITDA)
817
777
EBIT
678
640
Earnings for the period
533
512
Seafreight
With a 4.5 per cent increase in container volumes in the third quarter 2016, Kuehne + Nagel again outperformed market growth of one to two per cent. Beside material volume increases in the transpacific and intra-Asian trade lanes, reefer transports in particular contributed to the favourable development. The low rate levels in most of the trade lanes continued and the impact of the further consolidation of the shipping industry increased pressure on the margins. Gross profit per TEU decreased by 4.4 per cent in the third quarter.
Compared to the first nine months of the previous year, Kuehne + Nagel expanded its container volume by 5.4 per cent. Gross profit rose by 4.3 per cent and the EBIT-to-gross profit margin remained high at 31.8 per cent (previous year: 32.7 per cent). EBIT improved by 1.5 per cent to
CHF 340 million.
Airfreight
The global airfreight market remained tense in the third quarter and pressure on margins continued due to shrinking demand and further capacity increases. Against this trend, Kuehne + Nagel grew its tonnage by 3.8 per cent and gross profit per 100 kilos by 1.4 per cent, mainly due to further scaling its industry-specific solutions. Compared to the first nine months of the previous year, Kuehne + Nagel increased its volume by 2.2 per cent. Gross profit rose by 6.4 per cent and the EBIT-to-gross profit margin remained at last year's high level at 30.7 per cent (2015: 30.0 per cent). EBIT improved by 8.9 per cent to CHF 220 million.
Overland
In the overland business unit, growth momentum in turnover and gross profit from the previous quarters continued. Business developed particularly well in Europe, whilst slowing in the USA due to the development of transport cost.
Compared to the first nine months of the previous year, net turnover increased by 16.9 per cent and gross profit by 9.4 per cent. EBIT improved by 5.9 per cent to CHF 18 million.
Contract Logistics
New contracts have been won through Kuehne + Nagel's ability to offer scalable end-to-end solutions to customers of the automotive, high-tech, pharmaceutical and consumer goods industries. The successful implementation of new projects continued, leading to an increase of 4.4 per cent in gross profit in the third quarter. Compared to the first nine months of the previous year, net turnover rose by 5.2 per cent, outperforming market growth. Gross profit increased by 6.4 per cent compared to the previous year and EBIT improved from CHF 86 to CHF 100 million.
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: "Cautious consumer behaviour in parts of the EU and the USA resulted in lower export volumes in Asia. In addition, the tougher situation in the shipping industry increased pressure on seafreight margins. By maintaining our Group's focus on industry-specific logistics solutions and high-quality services, we succeeded in achieving growth and stable results despite the demanding market environment. We are confident about the business development in the fourth quarter of 2016."
