Swiss-based third-party logistics provider Kuehne + Nagel grew net earnings 9.2 percent year-over-year to 356 million Swiss Francs in the first six months of 2016 following a 5.4 percent increase for the full year in 2015.
The Kuenhe + Nagel Group posted net earnings of 356 million Swiss Francs (U.S. $361.21 million) in the first half of 2016, a 9.2 percent increase from the same 2015 period, according to the third-party logistics provider’s latest financial statements.
The earnings growth followed a 2015 fiscal year in which profits were up 5.4 percent from 2014, and came despite a slight reduction in revenues, which fell 0.62 percent to CHF 8.2 billion.
Gross profits at the Swiss-based third-party logistics provider totaled CHF 3.26 billion for the first half of 2016, a 7.9 percent increase from first half of last year.
K + N’s seafreight division saw earnings before interest and taxes (EBIT) grow 8.3 percent year-over-year to CHF 221 thanks to a 5.8 percent increase in container volumes that resulted from higher volumes of exports from Asia to Europe and the United States.
EBIT in the airfreight division increased 8.1 percent to CHF 147 million as volumes rose 1.3 percent compared with the first half of 2015. K + N attributed the increase primarily to the expansion of customer specific services and industry solutions, and strong export business in Asia, the Middle East and Africa.
The company’s overland division posted an EBIT of CHF 17 million, a year-over-year jump of 21.4 percent, on revenues that grew 22.6 percent, thanks primarily to positive contributions from its integration of U.S.-based ReTrans Group, which K + N acquired in August 2015.
The contract logistics division boosted EBIT 25 percent to CHF 70 million compared with the first six months of 2015 on 6.9 percent revenue growth.
“The first half of 2016 has been shaped by different regional economic development trends,” K + N CEO Dr. Detlef Trefzger said of the results. “Global trade showed a lack of growth momentum. Our strategy to focus on organic growth and gaining market shares by offering industry-specific solutions once again led to increases in volumes and results. Our Group delivered a strong performance and has significantly improved gross profit, and therewith increased profit.”
“In the second quarter, the Kuehne + Nagel Group improved its performance and managed to expand market shares in a heterogeneous economic environment,” added Dr. Joerg Wolle, chairman of the board of directors of Kuehne + Nagel International AG. “Based on its successful strategic focus, we are confident that we can continue the momentum in volume and profit into the second half of the year from today’s perspective.”
K + N boosts profits again in first half 2016
