KUEHNE & NAGEL SEES RECORD RESULTS IN 2000

KUEHNE & NAGEL SEES RECORD RESULTS IN 2000

   Kuehne & Nagel, the global logistics group, reported record increases in earnings and volumes, particularly for its ocean freight and air freight activities, for 2000.

   Net income improved 32.2 percent to CHF 125.9 million ($74.3 million), on revenues of CHF 8.25 billion ($4.90 billion), up 24.3 percent. Gross profit rose 17.4 percent to CHF 1.45 billion ($855.6 million) while earnings before interest and taxes (EBIT) jumped 42.1 percent to CHF 189.5 million ($111.8 million).

   Kuehne & Nagel's international forwarding division, which comprises ocean freight, air freight, overland, rail and customs brokerage activities, comprised 88 percent of the group's total revenue, or CHF 7.25 billion ($4.3 billion), up 25.0 percent from 1999. Gross profit rose 19.5 percent to CHF 963.9 million ($568.7 million), while EBIT climbed 33.8 percent to CHF 170.9 million ($100.8 million).

   Ocean freight, which along with air freight accounted for 55.9 percent of the group's gross profit,    saw revenue increase 30 percent to CHF 3.69 billion ($2.18 billion), with gross profit up 19.4 percent to CHF 456.0 million ($269.1 million), and EBIT up 26.6 percent to CHF 97.6 million ($57.6 million). Ocean freight saw volumes grow 16 percent to nearly 800,000 TEUs, due to large contracts signed with high-tech and retail businesses.

   Air freight's revenue rose 25.0 percent to CHF 1.91 billion ($1.17 billion), while gross profit rose 22.4 percent to CHF 356.6 million ($210.4 million) and EBIT jumped 46.7 percent to CHF 62.8 million ($37.1 million). Kuehne & Nagel invested doubled its air charter frequencies between Europe and North and South America to overcome capacity bottlenecks, and invested heavily in its air freight business between Asia and North America.

   Kuehne & Nagel's overland and rail businesses remained stable, while the customs brokerage business 'suffered from substantial problems with eroding margins and the respective pressure on profitability,' the group said.

   The contract logistics business unit contributed about 27.6 percent to Kuehne & Nagel's gross profits. The unit reported revenues up 9 percent to CHF 736 million $434.3 million), while gross profit was CHF 9.1 million ($5.4 million) after a reported loss of CHF 2.2 million in 1999. The unit started up a logistics project in the Netherlands, restructured operations in Brazil and Great Britain and acquired two new logistics terminals in Germany. The logistics unit also expanded into the Asia Pacific region through an alliance with SembCorp. Logistics Ltd. Singapore, which manages about 850,000 square meters of warehousing space there.