• ITVI.USA
    15,379.620
    -113.610
    -0.7%
  • OTLT.USA
    2.786
    -0.021
    -0.7%
  • OTRI.USA
    21.500
    -0.060
    -0.3%
  • OTVI.USA
    15,349.750
    -127.770
    -0.8%
  • TSTOPVRPM.ATLPHL
    3.300
    -0.240
    -6.8%
  • TSTOPVRPM.CHIATL
    2.950
    -0.020
    -0.7%
  • TSTOPVRPM.DALLAX
    1.440
    0.000
    0%
  • TSTOPVRPM.LAXDAL
    3.310
    0.060
    1.8%
  • TSTOPVRPM.PHLCHI
    2.150
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    3.950
    -0.100
    -2.5%
  • WAIT.USA
    126.000
    1.000
    0.8%
  • ITVI.USA
    15,379.620
    -113.610
    -0.7%
  • OTLT.USA
    2.786
    -0.021
    -0.7%
  • OTRI.USA
    21.500
    -0.060
    -0.3%
  • OTVI.USA
    15,349.750
    -127.770
    -0.8%
  • TSTOPVRPM.ATLPHL
    3.300
    -0.240
    -6.8%
  • TSTOPVRPM.CHIATL
    2.950
    -0.020
    -0.7%
  • TSTOPVRPM.DALLAX
    1.440
    0.000
    0%
  • TSTOPVRPM.LAXDAL
    3.310
    0.060
    1.8%
  • TSTOPVRPM.PHLCHI
    2.150
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    3.950
    -0.100
    -2.5%
  • WAIT.USA
    126.000
    1.000
    0.8%
American Shipper

Kuehne & Nagel raises first-quarter net income 33%

Kuehne & Nagel raises first-quarter net income 33%

   Kuehne & Nagel, the Swiss forwarding and contract logistics provider, increased its net income 33 percent in the first quarter to CFR48 million ($37 million), thanks largely to a recovery in its air freight forwarding and contract logistics results.

   The group’s gross revenues rose 18 percent in the latest quarter to CFR2.6 billion ($2 billion) from CFR 2.2 billion in the first quarter of last year. Group gross profit was up 18 percent at CFR553 million ($422 million), and group operating income jumped 38 percent to CFR83 million ($63 million).

   Kuehne & Nagel’s main division, sea freight forwarding, raised its operating profit 10 percent to CFR33 million ($25 million) from CFR30 million. The division’s revenue was up 14 percent to CFR1.4 billion ($1 billion) from CFR1.2 billion. Its volume rose 22 percent, as compared to average market growth of 9 percent, Kuehne & Nagel said.

   The company’s air freight forwarding arm increased its operating income about 50 percent to CFR27 million ($21 million), as revenue rose 11 percent to CFR546 million ($417 million). The company said this was the result of “effective cost management and gains in efficiency.”

   Kuehne & Nagel’s contract logistics activities, which include the business previously known as USCO, more than doubled its operating income, from CFR5 million in the first quarter of 2003 to CFR11 million ($8 million) in the latest quarter. Contract logistics revenue rose 8 percent over the same period, to CFR295 million ($225 million).

   “The restructuring measures taken last year in contract logistics — the standardization of operational processes and IT applications — have doubled earnings and significantly raised earnings before interest, tax and amortization margins from 1.7 to 3.6 percent,” Kuehne & Nagel said. It added that it took advantage of the improving economic situation in North America and the upswing in the high-tech sector in Europe.

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