Kuehne & Nagel renews with profit

Kuehne & Nagel renews with profit    Swiss forwarding and logistics group Kuehne & Nagel bounced back into profit last year, with a net income of CHF196 million $157 million, as compared to a breakeven result in 2003, when extraordinary goodwill amortization charges on its U.S. logistics subsidiary USCO sapped its profits.
   Gross revenues at Kuehne & Nagel rose 8 percent in 2003 to CHF9.5 billion ($7.6 billion) from CHF8.8 billion in 2002. Net revenues, excluding customs duties and taxes, were also up 8 percent to CHF7.5 billion ($6 billion).
   Gross profit rose 8 percent to CHF2.1 billion ($1.7 billion), and operating income after goodwill charges soared to CHF281million ($225 million) from CHF17 million.
   Kuehne & Nagel said its 2003 net earnings of CHF196 million represent a 21.5-percent increase in comparison with last year’s result before the extraordinary amortization of goodwill.
   The Swiss group said it achieved a continued global growth and profitability in international forwarding last year, as well as the stabilization of the contract logistics business in North America, and realization of further steps to extend European overland activities.
   In particular, Kuehne & Nagel’s air freight and sea freight activities benefited from China’s continued economic growth, as well as the trend to increasingly relocate manufacturing and production facilities to Asia and Eastern Europe, it said. Those activities recorded “a significant increase in volumes.”
   Commenting on its sea freight forwarding arm, Kuehne & Nagel said the decline in margins and adverse currency effects were compensated by a 25-percent growth in volumes. This led to a 7.5-percent increase in gross profit.
   In air freight, gross profit was up by 5.8 percent due to improvements in volumes and margins.
   “On the basis of the first two months’ results, we are confident to continue the positive development in volumes and earnings,” said Klaus-Michael Kuehne, executive chairman of Kuehne & Nagel.