KUEHNE & NAGEL REPORTS RECORD INCOME IN 2001

KUEHNE & NAGEL REPORTS RECORD INCOME IN 2001

   Kuehne & Nagel, the Swiss global logistics company, reported record net income of CHF 160.5 million ($93.6 million) for 2001, up 27.5 percent.

   All business units recorded strong growth, the Schindellegi-based company said. While its core sea-freight business was particularly profitable, the company's contract logistics activities were strengthened by the acquisition of USCO Logistics, effective August 1. While the economic slowdown impacted Kuehne & Nagel's air-freight and customs brokerage units, the company's global presence helped compensate the impact.

   Gross profit rose 18.9 percent to CHF 1.73 billion ($1.04 billion), including a negative currency impact of 3.5 percent. The contract logistics business unit contributed 34.5 percent to the gross profit or CHF 595.0 million ($356.9 million), while the sea- and air-freight sectors produced the largest share with 62.3 percent, or CHF 1.08 billion ($647.9 million).

   Revenue improved 2.3 percent to CHF 8.44 billion ($5.06 billion). The contract logistics business unit reported a 27.8 percent increase in revenue, to CHF 941.4 million ($564.8 million). While cargo overcapacities occurred in the sea- and air-freight industries, ocean-freight revenue rose 6.4 percent to CHF3.93 billion ($2.36 billion), and air freight rose 4.1 percent to CHF 1.98 billion ($1.19 billion).

   Earnings before interest and taxes (EBIT) rose 7.5 percent to CHF 213.0 million ($127.8 million). Contract logistics EBIT declined 12.8 percent to CHF 12.9 million ($7.7 million), due to CHF 14 million in goodwill amortization. Improvements in sea-freight offset overall declines as EBIT rose slightly, to CHF 176.6 million ($105.9 million).

   North, Central and South America results suffered from economic decline and goodwill amortization. The company saw the region's EBIT decline fall 33.2 percent to CHF 34.2 million ($20.5 million). Asia Pacific showed the strongest growth, 30.2 percent, to CHF 65.5 million ($39.3 million). Europe's EBIT improved 13.0 percent to CHF 110.7 million ($66.4 million), while the Middle East and Africa saw EBIT of CHF 2.6 million ($1.6 million) after a loss of CHF 1.3 million in 2000.