Kuehne + Nagel sees first half profit rise 14.5pc

SWISS forwarding giant Kuehne + Nagel had first half profits rise 14.5 per cent to CHF308 million (US$303 million), but looks forward to slower growth in months and years to come.

Turnover grew 7.3 per cent to CHF10.7 billion. EBITDA improved by 12.3 per cent to CHF530 million; the margin rose from 4.7 to 5.0 per cent.

"We prepared for any possible economic slowdown in good time, focusing on strict cost management and profitable growth," said Kuehne + Nagel International CEO Klaus Herms. "We are satisfied with the half-year result, which reaffirms the sustainability and stability of our business model even in difficult economic times."

The company increased its container volumes by 7.4 per cent. The group achieved strong growth on trade from North America to Europe and Asia while Asia to Europe trade growth has slowed.

The strong demand for the company's sea freight information logistics solutions, alongside productivity increases and strict cost management, contributed to a 12.2 per cent improvement of the operational result. At 4.3 per cent the EBITDA margin was above the previous year's 4.2 per cent, a company statement said.

Kuehne + Nagel said the group registered slower airfreight growth in the second quarter, and increased tonnage by 11.4 per cent during the first half of the year. Cost efficiencies, new contracts and growing existing accounts were crucial to this good performance that is also reflected in the operational result's 20.6 per cent improvement. The EBITDA margin reached a record 6.1 per cent, up from 5.6 per cent the previous year.

In overland business, net turnover was up 13.8 per cent year on year. Higher capacity utilisation helped raise operational results 8.7 per cent. The EBITDA margin remained stable at 1.7 per cent.

The contract logistics business unit benefited from its global focus, with business remaining stable at a high level despite economic uncertainties. Net turnover increased by 5.9 per cent. Strict cost management helped leverage the operational result by 11.0 per cent. The margin increased from 5.2 - 5.5 per cent, the release said.