Kuehne + Nagel sees turnover increase 15.9%

EBITDA grew to CHF 475 million, an increase of 1.9 percent, while net earnings saw an 8.9 percent improvement to CHF 281 million in the first half of 2010 as second quarter growth accelerated.

Reinhard Lange, CEO of Kuehne + Nagel International AG, said: “The entire logistics industry has capitalized on the economic recovery, resulting in rising transport volumes and increased warehouse utilization.”

The increase in volumes meant that the company’s productivity levels also improved considerably. Lange acknowledged that the market remains “volatile” and “challenging”.

Seafreight saw particularly strong volume growth of approximately 20 percent in the first six months of the year, according to the company’s results. The division experienced shortages in shipping capacity and containers, in turn resulting in significant rate increases.

RECORD GROWTH

Kuehne + Nagel observed “surprisingly” high growth rates in the international airfreight market of 31 percent – a record high.

Due to process efficiency and productivity increases, the operational result increased by 7.1 percent.

While the European overland transport market reported volume growth, the company said providers were exposed to high pressure on prices and “fierce” competition.

Net turnover in the road and rail logistics division saw a 13.3 percent rise as a result of expanding activity in groupage and less-than- (LTL) and full-truckload (FTL) services.

In contract logistics, Kuehne + Nagel attributed the 4.7 percent increase in net turnover to new business wins in the first half.

Karl Gernandt, Executive Vice Chairman, said the “convincing start” meant the group was “optimistic” about the continued development of the business. However, he warned of credit risks in some southern European countries and said it would remain vigilant of the international finance markets.

Edited by Chris Farnell

Read the company’s full results for the first half of 2010 here.