Kuehne & Nagel boosts net income

Kuehne & Nagel boosts net income

   Kuehne & Nagel, the big Swiss logistics company, said its net income for the first nine months of 2002 increased 23.2 percent to CHF133.6 million ($101.6 million).

   Turnover increased 6.6 percent to CHF6.95 billion ($5.29 billion). While earnings before income tax and amortization improved 3.3 percent to CHF230.7 million ($175.5 million), excluding negative currency effects the growth rate would have been 8.4 percent.

   Despite 'considerable margin pressure and fierce competition,' Kuehne and Nagel said its international forwarding business unit saw gross profit increase 6.9 percent to CHF920.0 million ($699.9 million), while turnover increased 8.8 percent to CHF6.06 billion ($4.61 billion).

   Sea freight gross profits rose 4.8 percent to CHF469.2 million, as declines in margins and the strong currency effect were offset by significant growth in volumes, Kuehne & Nagel said. Air freight gross profits improved 3.6 percent to CHF 298.0 million ($226.7 million).

   Total contract logistics saw operating results improve for the first time this year over the year-earlier period. Gross profit rose 4.1 percent to CHF562.7 million ($428.1 million), despite a 3.8-percent drop in turnover, to CHF825.0 million ($627.7 million). The company said all regions, including the U.S., improved.

   'The focus on high value services, stringent cost management and the income from fixed-term special projects were significant factors for the distinct margin improvement,' K&N said.

   Gross profit by region improved 8.5 percent in Europe to CHF753.8 million ($573.5 million); declined 1.0 percent in the Americas to CHF532.0 million ($404.7 million'; rose 5.9 percent in the Asia Pacific to CHF169.6 million ($129.0 million); and increased 15.5 percent in the Middle East and Africa to CHF49.2 million ($37.4 million).