The global third-party logistics provider managed to increase earnings, revenues and volumes during the year, in addition to closing on various acquisitions.
Kuehne + Nagel’s latest financial statements released Wednesday revealed the global third-party logistics provider came out strong in 2017.
The Swiss-based company increased its overall earnings and revenues from 2016, while also posting volumes growth across all business units.
In addition, the company upped its number of employees by 8.3 percent from 2016, amid closing on various acquisitions.
Kuehne + Nagel’s earnings for 2017 reached CHF 740 million (U.S. $785 million), up 2.8 percent from the prior year, while revenues totaled CHF 22.2 billion, up 11.2 percent.
Broken down by business unit, sea freight revenues totaled CHF 8.8 billion, a 10.3 percent increase from 2016, while airfreight revenues stood at CHF 4.8 billion (up 20.9 percent), overland revenues reached CHF 3.4 billion (up 7.2 percent) and contract logistics revenues were CHF 5.3 billion (up 7.3 percent).
During the year, Kuehne + Nagel increased its sea freight volumes 7.5 percent to 4.4 million TEUs, thanks to especially strong growth in the reefer container business and less-than-container-load operations. The company experienced particularly strong volumes increases in the intra-Asian and U.S. trade lanes.
It also came as no surprise that Kuehne + Nagel came out strong in its airfreight business unit, as airfreight volumes in general have increased across the globe, a topic American Shipper provided in depth coverage on in its October 2017 magazine feature story, “Flying High.”
However, Kuehne + Nagel’s airfreight tonnage grew twice as fast as the overall market in 2017, with the company handing 1.6 million tons, up 20.4 percent from 2016.
“Highlights from the past business year include the seamless integration of four acquisitions, which strengthen our leading position in perishables as well as pharma and healthcare logistics,” Kuehne + Nagel CEO Dr. Detlef Trefzger said.
In April 2017, Kuehne + Nagel expanded its pharma and healthcare logistics footprint through acquiring 100 percent of the shares of Zet Farma in Turkey and Ferlito Pharma Logistics in Italy.
Later in the year, the company expanded its presence in the perishables logistics market through acquiring 100 percent of the shares of both Trillvane Limited in September 2017 and Commodity Forwarders Inc. in October 2017.
Looking ahead, Kuehne + Nagel’s board of directors will propose a dividend per share of CHF 5.75 (up from CHF 5.50 the previous year) to the annual general meeting on May 8.
Kuehne + Nagel posts strong 2017 results
