K + N first half profits down 12%
Swiss logistics giant Kuehne + Nagel said Monday its half-year earnings before tax and interest fell 12 percent to 466 million Swiss francs ($436 million) while revenue fell 16.3 percent to 8.5 billion Swiss francs ($7.9 billion).
'Considering the extremely difficult global economic environment, the development of our business and results during the first half of 2009 was satisfactory,' Reinhard Lange, chief executive officer of Kuehne + Nagel International AG, said in a statement. 'We expanded market share throughout the business units, while our value-creating services and global cost management contributed to margin improvements.'
The company said ocean freight volumes fell 11 percent compared to the first half of 2008, but 'due to strict cost management and growing demand for complex logistics services,' profit margin increased from 4.3 percent to 5.5 percent. Air freight volume fell 19 percent, marginally below the industry-wide average of 20 percent, while contract logistics revenue fell 9.1 percent.
The K + N board said it 'does not anticipate a substantial short-term improvement in the global economy and markets.'