Kuehne & Nagel profits continue to soar despite probe

Kuehne & Nagel profits continue to soar despite probe

Related Stories •   Freight forwarder probe widens •   Kuehne + Nagel picks Lange as Herms’ CEO replacement

Swiss company Kuehne & Nagel, embroiled in an international investigation into possible anticompetitive behavior within the freight forwarding industry, today reported a 34.2 percent jump in third quarter net earnings to CHF142.9 million ($124 million), compared to CHF106.1 million in the same quarter in 2006.
   The Basel-based firm’s quarterly earnings before interest and tax (EBIT) increased 31.8 percent to CHF179.5 million ($155 million) from CHF136.2 million. Turnover for the period rose 17.6 percent to CHF5.40 billion ($4.66 billion).
   For the year so far, Kuehne & Nagel posted net income of CHF409.6 million ($354 million), up 30.2 percent. EBIT rose 22.2 percent to CHF525.4 million ($453 million), while sales increased 15.7 percent to CHF15.37 billion ($13.26 billion).
   After nine months, revenue from Kuehne & Nagel’s main division, sea freight, gained 16.1 percent year-on-year to CHF7.08 billion ($6.11 billion) after a volume gain of 16 percent. Air freight revenue improved 8.4 percent to CHF2.67 billion ($2.30 billion) with a tonnage gain of 15 percent. Contract logistics turnover was up 20.3 percent to CHF3.42 billion ($2.95 billion) while rail and road logistics rose 16.9 percent to CHF2.09 billion ($1.80 billion).
   'Our dynamic growth is a result of strong global trade and our ability to offer customers value-adding, integrated services worldwide,” said Klaus Herms, Kuehne + Nagel’s chief executive officer. “The effective implementation of our strategy is reflected in the constant growth rates recorded across our business units and regions. We are confident that this trend will continue and we will exceed last year's good results.'
   Herms will be succeed as Kuehne + Nagel’s CEO for mid 2009 by Reinhard Lange, currently board member in charge of sea and air logistics.