KUEHNE & NAGEL BOOSTS 1ST-QUARTER PROFIT

KUEHNE & NAGEL BOOSTS 1ST-QUARTER PROFIT

   Kuehne & Nagel, the global logistics group, reported first-quarter net income of CHF 38.1 million ($23.4 million), down 9.3 percent from the year-earlier period.

   Excluding one-off income of CHF 10.9 million ($6.7 million) from the sale of Uniport Multipurpose Terminals B.V., Rotterdam, new income would have improved 22.5 percent, the Schindellegi, Switzerland-based company said.

   Earnings before interest, taxes, depreciation and amortization increased 10.3 percent to CHF 87.6 million ($54 million), while revenue declined 1.2 percent to CHF 2.05 billion ($1.26 billion).

   The International Forwarding business unit, K&N's primary business, saw earnings before interest and taxes (EBIT) improve 34.8 percent to CHF 50.4 million ($31.1 million), while revenue slipped 3.8 percent to CHF 967.1 million ($596.4 million).

   'Airfreight EBIT fell 8.3 percent to CHF 13.2 million ($8.1 million), while revenue decreased 6.4 percent to CHF 473.4 million ($291.9 million). Positive results in transpacific air-freight activities were offset by overall reduced volumes due to the global economic downturn.

   The Contract Logistics business saw a loss in EBIT of CHF 1.9 million ($1.2 million, compared to 2001 when the EBIT was CHF 6.1 million, due to the substantial reduction of U.S. warehousing business. Revenue climbed 60.8 percent to CHF 277.6 million ($172.6 million), largely due to the acquisition of USCO Logistics.

   K&N's management board anticipates net income for 2002 will top CHF 150 million.