Kuehne + Nagel profit off 20%
SCHINDELLEGI, Switzerland
Swiss forwarding and logistics giant Kuehne + Nagel said it had net profit of 467 million francs ($431 million) in 2009, 20 percent less than in 2008.
Revenue fell 19.4 percent to 17.4 billion Swiss francs ($16.1 billion) in 2009.
'The good performance of the Kuehne + Nagel Group in the crisis year of 2009 was due to its operational strengths and the timely and consistent execution of its strict cost management and commitment to market share expansion,' said Karl Gernandt, executive vice chairman. 'Thus, we were able to considerably strengthen our global market position. In addition, we took advantage of the crisis to further improve organizational and operational efficiencies in line with our profitability objectives.'
The company said it has set aside 35 million francs ($32.2 million) to cover 'all possible costs' connected with an investigation of the freight forwarding industry by various competition authorities. 'Based on negotiations with the U.S. Justice Department, Kuehne + Nagel expects that it will be possible to reaching a settlement.'
The company said its sea freight business was 'caught in the down current of world recession,' but 'managed to win market share against the trend in many trade lanes.'
Air freight experienced an 'unprecedented slump in demand' from the fourth quarter 2008 until July 2009. K + N said by increasing sales activities and concentrating its specialized services in this segment, 'the 9.2 percent volume decline was less than the overall market average.'
Kuehne + Nagel profit off 20%
