Kuehne & Nagel’s 1st quarter profits up 46%
Swiss forwarding and contract logistics provider Kuehne & Nagel’s net income in the first quarter jumped 46.2 percent to CHF101.6 million ($80 million), compared to CHF69.5 million in the same quarter 2005.
The group’s operating income rose 68.7 percent to CHF199.1 million ($157 million) from CHF118 million a year ago. Revenue increased 41.7 percent in the latest quarter to CHF4.29 billion ($3.38 billion) from CHF3.03 billion.
Operating profit from Kuehne & Nagel’s main division, sea freight forwarding, improved 44.6 percent to CHF76.5 million ($60 million) after its volume rose 20.1 percent, more than double the average market growth, Kuehne & Nagel said.
The company’s air freight forwarding arm increased its operating income 8.8 percent to CHF37.2 million ($29 million).
Kuehne + Nagel said the acquisition of ACR Logistics “has elevated the company into a new league in contract logistics,” with operating profit soaring 216 percent to CHF66.3 million ($52 million). “Productivity increases as well as ongoing standardization and centralization of IT systems contributed to the positive development of margins in this business,” Kuehne + Nagel said of its contract logistics unit.
“The results, which have exceeded our expectations, are a great confirmation of the effective implementation of our strategy. We remain confident regarding the future performance of our business and the development of earnings,” said Klaus Herms, chief executive officer of Kuehne + Nagel.
Kuehne & Nagel’s 1st quarter profits up 46%
