Kuehne + Nagel’s earnings up 32% in 2005
Swiss forwarding and logistics group Kuehne + Nagel International AG today reported net earnings of CHF315 million ($239 million) in 2005, up 32.3 percent from CHF238 million in 2004.
Turnover for Kuehne + Nagel was CHF14.05 billion ($10.7 billion), up 21.5 percent over 11.56 billion CHF in 2004. The company’s operational result for 2005 increased 19.1 percent to CHF454 million ($345 million) from CHF381 million in the previous year.
In Kuehne & Nagel’s main division, sea freight forwarding, revenue increased 23 percent to CHF7.5 billion ($5.7 billion) from CHF6.1 billion thanks to a 19.4 percent volume increase. Air freight volumes improved 9.4 percent boosting revenue 16 percent to CHF3.01 billion ($2.3 billion). Rail and road logistics revenue grew 32 percent to CHF2.1 billion ($1.6 billion). In contract logistics, revenue was up 14 percent to CHF1.3 billion ($988 million). Kuehne + Nagel’s insurance broker unit subsidiary Nacora, posted revenue of CHF106 million ($81 million), up 16 percent compared to CHF106 million in 2004.
“In 2005, Kuehne + Nagel maintained the first half’s pace of expansion through the end of the year. We improved performance and profitability while strengthening our global market position,” said Klaus Herms, Kuehne + Nagel’s chief executive officer. “In addition, through strategic investments we continued to lay foundations for further sustainable growth.”
In October 2005, Kuehne + Nagel agreed to buy ACR Logistics (formerly Hays Logistics) for 440 million euros ($525 million). Other recent takeovers include Scituate, Mass.-based forwarder Aces Ltd. and Danish forwarder Ziegler & Co., both for undisclosed amounts.
“Given our strong presence in all key markets worldwide, we are well positioned to continue benefiting from globalization and growing trade flows,” said Klaus-Michael Kuehne, executive chairman of the board of directors at Kuehne + Nagel. “The Kuehne + Nagel Group’s considerable business potential and proven logistics capabilities will receive additional momentum from the merger with European contract logistics company ACR. We are confident that we can significantly strengthen and expand our market position again in 2006.”
Based in Schindellegi, Switzerland, Kuehne + Nagel has more than 40,000 employees at 750 locations in over 100 countries.