The third-party logistics provider announced record results, including a 6.1 percent increase in net profits from 2013.
The Swiss-based Kuehne + Nagel Group announced a year-over-year increase in gross profits of 0.5 percent to 6.29 million Swiss Francs (U.S. $6.63 million) compared to 2013. Net profits improved 6.1 percent to CHF 644 million in 2014, according to the third-party logistics provider’s latest financial statements.
The company said performance improved across all business areas compared to 2013.
The ocean freight division of Kuehne + Nagel handled over 3.8 million TEUs in 2014, an increase of 7 percent compared to 2013. The global seafreight market, by comparison, grew by approximately 4 per cent, the company said. The company attributed the growth to an improved economic climate in the United States and “considerable” volume increases in the transpacific and transatlantic trade lanes. The company noted that specialized solutions like reefer and less-than-container load services also saw increased volumes.
Kuehne + Nagel increased airfreight tonnage by 5.3 percent in 2014, compared with overall market growth of 3-4 per cent. Contributing factors to growth in this business unit were industry-specific airfreight products for the pharmaceutical, automotive and industrial goods sectors, according to the company.
The company’s contract logistics unit increased EBIT by 7.7 percent, primarily as a result on its focus on scalable solutions and services for internationally operating customers from industries like the pharmaceutical, automotive and e-commerce sectors.
Kuehne + Nagel also announced its board of directors will propose an increased shareholder dividend of CHF 4.00 per share for 2014, as well as the payment of an extraordinary dividend of CHF 3.00 per share, at the company’s annual general meeting. The company paid CHF 3.85 per share and CHF 2.00 per share in dividend and extraordinary dividend in 2013, respectively.
“In a volatile economic environment with fluctuating currencies, we were able to simultaneously expand our market share and increase results in 2014,” Kuehne + Nagel Group CEO Dr. Detlef Trefzger said of the results. “The turnaround in the overland business unit made an essential contribution to the considerable improvement in profitability; for the first time profits were reported over four consecutive quarters.
“I would also like to emphasize the continuously excellent performance in airfreight and the further improvement of results in contract logistics,” Trefzger added. “In seafreight we grew volumes and held margins stable, despite the high volatility of rates and negative currency impacts. By combining our industrial competence, innovative power and effective cost management we are strengthening our market position while at the same time generating added value for our customers.”
Karl Gernandt, chairman of the board of directors of Kuehne + Nagel International AG, said, “The annual result shows: Our business unit strategies have proven to be effective and our targeted efforts at all levels have been rewarded. We set ourselves ambitious targets and we have reached these with a new record result.
“In 2015 market conditions will again be challenging, therefore the continuous improvement of our performance remains our clear ambition,” added Gernandt. “The Board of Directors is 5 of 5 confident, that the positive business development will continue throughout the anniversary year.”
Kuehne + Nagel meets ‘ambitious’ financial targets for 2014
