K+N sees small increase in 2011 profit

   The Swiss forwarding and logistics company Kuehne + Nagel reported a profit of 606 million Swiss francs ($665 million) for the full year 2011, compared to 605 million the prior year.
   Revenue for the year was 19.6 billion Swiss francs, compared to 20.3 billion in 2010.
   The company said revenue in North, Central and South America recorded an increase of 0.8 percent in 2011 over 2010, but declined in other regions: in Europe by 4.5 percent, Asia-Pacific by 4.1 percent, and the Middle East, Central Asia and Africa by 2.6 percent.
   “Considering the market and currency turbulences, the diverging economic developments and the devastating natural disasters, which influenced the business environment in 2011, we achieved very satisfactory annual results,” said Karl Gernandt, K+N’s chairman, in a statement.
   The company said it had an 11 percent increase in the amount of sea freight in 2011 when compared to 2010, and that it broke the 3-million-TEU barrier for the first time. The company said it achieved double-digit growth rates, particularly in the Asian and non-European trades. In the transpacific, K+N expanded its volume by more than 15 percent. It said it increased activities in the less-than-containerload segment.
   In air freight, the company reported a 13 percent increase in tonnage, which it said was far better than the overall market, which declined 0.7 percent.
   K+N’s net invoiced road and rail logistics revenues were up 18.8 percent in local currencies, with revenues boosted by the acquisition of British RH Freight Group and German Drude Logistik.
   In contract logistics, K+N said revenue rose 7.8 percent on a currency-neutral basis, but said earnings before interest, tax, depreciation and amortisation was “impacted by one-off costs in connection with the restructuring measures taken in North America and in France and decreased by 14.4 percent compared to the previous year.”
   “While Germany and the Netherlands achieved excellent results, the business in some Southern and Western European countries was negatively affected by the softening consumer demand. This applies particularly to France, where the difficult development of results called for extensive restructuring measures. These will continue to have some impact in the current fiscal year,” the company said
   K+N said it made “good progress” in expanding contract logistics activities in Asia and South America, while in North America it “achieved a significantly improved result through restructuring measures, the closure of unprofitable sites and newly gained business.”
   Looking to 2012, the company said “uncertainties still persist with regards to the economic development in 2012. Particularly in the first half of the year, global economy and trade are expected to perform less dynamically.”
   But Reinhard Lange, chief executive officer, said K+N was “confident to reach our targets in the current business year again: Profitable growth above-market average in all business units. We are facing up to the uncertain economic development by consistent cost management, process optimization and increased productivity.”