The Swiss-based third-party logistics provider has been busy this quarter, entering into new acquisition agreements as its second quarter net earnings grew 2.1 percent year-over-year to 191 million Swiss Francs (U.S. $200.5 million).
Swiss-based Kuehne + Nagel Group’s net earnings for the second quarter of 2017 totaled 191 million Swiss Francs (U.S. $200.5 million), a 2.1 percent increase from last year’s second quarter, according to the company’s latest financial statements.
Net turnover for the quarter reached CHF 4.52 billion, up 9.2 percent from the second quarter of 2016.
On April 21, Kuehne + Nagel acquired 100 percent of the shares of Ferlito Pharma S.r.l., Italy, and effective April 26, the group retrospectively as of Jan. 1 acquired 100 percent of the shares of Zet Farma Lojistik Hizmetleri Sanayi ve Ticaret A.S.
“The acquisitions contributed CHF 7 million of net turnover and CHF 7 million of loss, including the amortization of other intangibles of CHF 7 million, to the consolidated net turnover and earnings respectively for the first six months of 2017,” Kuehne + Nagel said.
The company posted net earnings of CHF 356 million for the first six months of 2017, holding flat compared to the corresponding 2016 period, while net turnover rose 8.2 percent year-over-year to CHF 8.82 billion.
As of June 30, Kuehne + Nagel had 72,139 employees, up 6.4 percent from a year prior, with 52,846 employees in Europe, the Middle East and Africa; 11,312 in the Americas; and 7,981 in the Asia Pacific.
In the third quarter of this year, Kuehne + Nagel has been busy entering into new acquisition agreements in an effort to expand its airfreight and perishable transportation offerings.
The company in early July struck a deal to acquire the non-controlling interest of 30 percent of the shares of Nacora Insurance Brokers Ltd., Hong Kong for CHF 0.6 million. The group already owned 70 percent of the shares of Nacora Insurance Brokers Ltd.
A few weeks later, Kuehne + Nagel entered into an agreement to acquire 100 percent of the shares of Trillvane Ltd., a market leader in Kenyan perishable logistics; and just yesterday the group entered into a deal to acquire 100 percent of the shares of Los Angeles-based perishables airfreight forwarder Commodity Forwarders Inc.
“The business potential in the steadily growing global perishable sector is huge,” said Yngve Ruud, member of the management board of Kuehne + Nagel, responsible for airfreight logistics. “Together with CFI, Kuehne + Nagel becomes the number two airfreight forwarder in the United States and the acquisition of Trillvane confirms our leading position in Kenya.”
Both agreements are subject to customary closing conditions, and financial terms have not been disclosed.
Looking ahead, Kuehne + Nagel CEO Dr. Detlef Trefzger said, “During the second half of the year, we will continue to focus on volume growth, productivity increases and the scaling of industry-specific solutions.”
K + N earnings rise 2.1% in Q2 2017
