KUEHNE & NAGEL MAINTAINS ANNUAL PROFIT FORECAST

KUEHNE & NAGEL MAINTAINS ANNUAL PROFIT FORECAST

   Kuehne & Nagel, the Swiss logistics and transport group, said it maintains its forecast of a 140 million Swiss francs ($85 million) in group profits for 2001, despite the economic downturn.

   The Swiss group also reported a net profit of SFr116 million for the first nine months of the year, including the results of newly acquired USCO Logistics, exceeding the results for the same period last year by 34 percent.

   Earnings before interest and tax rose 24 percent, to SFr163 million ($99 million).

   Kuehne & Nagel said the latest results validate its efficiency and strategy.

   “Focusing on high-value integrated logistics and supply chain management solutions generates evident results and is of advantage in times of an economic slowdown,” the group said.

   Klaus Herms, chief executive officer, said the group’s contract logistics business is an important element within its full-service logistics, and a significant growth potential.

   The results of USCO Logistics were consolidated into those of Kuehne & Nagel and back-dated to Jan. 1. USCO Logistics contributed significantly to the group’s contract logistics results. The contract logistics unit posted earnings before interest and tax of SFr19.5 million ($12 million) in the latest nine-month period, compared to a loss of SFr2.6 million last year.

   In the global sea freight business, Kuehne & Nagel said “the pressure on rates raises difficulties for the industry,” but the Swiss group maintained profits from sea freight at last year’s level.

   Air freight volumes have declined, particularly since the Sept. 11 events, but Kuehne & Nagel said the group “was able to keep the implications limited.” Earnings before interest and tax on air freight dropped to SFr43 million ($26 million) in the latest nine-month period, from SFr45 million in the same period last year.