K + N posts Q3, first nine-month results

The Swiss-based third-party logistics provider posted net profits of CFH 177 million for the third quarter of 2016 and CHF 533 million for the first nine months of the year.    Kuehne + Nagel (K + N) reported Tuesday its net profits for the third quarter of 2016 slipped 4.8 percent year-over-year to 177 million Swiss francs (U.S. $178.8 million).
   Gross profits for the quarter ticked up 3.3 percent year-over-year to CHF 1.6 billion.
   For the first nine months of 2016, the Swiss-based third-party logistics provider’s net profits rose 4.1 percent from the corresponding period in 2015 to CHF 533 million, while gross profits jumped 6.3 percent to CHF 4.9 billion.
   The seafreight division experienced a 4.5 percent increase in container volumes for the third quarter of 2016, outperforming market growth of one to two percent. For the first nine months of the year, the division’s earnings before interest and taxes (EBIT) inched up 1.5 percent from the corresponding period a year prior to CHF 340 million.
   Meanwhile, the global airfreight market remained tense in the third quarter of 2016 and pressure on margins continued due to shrinking demand and further capacity increases. However, K + N was able to grow its tonnage and gross profits in its airfreight division for the quarter, thanks to K + N further scaling its industry-specific solutions, the company said. For the first nine months of 2016, the airfreight division’s EBIT rose 8.9 percent year-over-year to CHF 220 million.
   In addition, the overland division posted an EBIT of CHF 18 million for the first nine months of 2016, while the contract logistics division reported an EBIT of CHF 100 million during this period, year-over-year increases of 5.9 percent and 16.3 percent, respectively.