Kuehne + Nagel’s 2007 profit up 16%
Swiss forwarding and logistics group Kuehne + Nagel International AG today reported net earnings of 531.2 million Swiss francs ($471 million) for 2007, up 15.9 percent from SFr 458.3 million in the previous year.
The Schindellegi-based company’s annual earnings before interest and tax (EBIT) increased 14.1 percent to SFr 685.6 million ($607 million) from SFr 600.7 million in 2006. Turnover rose 15.3 percent to 20.98 billion SFr ($18.56 billion).
In Kuehne & Nagel’s main division, sea freight, EBIT increased 11.9 percent to SFr 386.3 million ($342 million) on a revenue gain of 16.1 percent to SFr 9.64 billion ($8.53 billion). The company said its sea freight volume outgrew the worldwide market and increased 15 percent, handling more than 2.6 million TEUs.
Kuehne & Nagel’s annual air freight EBIT rose 29.5 percent to SFr 195.6 million ($174 million). Turnover in the division went up 9.8 percent at 9.64 billion SFr ($3.29 billion) after a volume rise of 14 percent.
For contract logistics, the company posted EBIT of 100.5 million SFr ($89 million), up 57 percent, while revenue improved 19.1 percent to SFr 4.66 billion ($4.13 billion).
The company posted an EBIT loss of SFr 54.7 million ($48 million) for its rail and road logistics division, although revenue increased 14 percent to SFr 2.82 billion ($2.5 billion).
Kuehne & Nagel’s annual revenue broken down on a regional basis was:
' Europe, SFr 14.13 billion ($12.5 billion), up 16.8 percent year on year.
' Americas, SFr 3.96 billion ($3.5 billion), up 9.9 percent.
' Asia Pacific, SFr 1.77 billion ($1.56 billion), up 14.7 percent.
' Middle East, Central Asia and Africa, SFr 1.12 billion ($994 million), up 16.9 percent.
'Our comprehensive service portfolio attracted attention worldwide and generated sustained growth and remarkable results in 2007,” said Klaus Herms, Kuehne + Nagel’s chief executive officer. “In sea and air freight we met our ambitious objective to achieve profitable growth above the market average. Contract logistics has become the company's third pillar and increased margins as well as significantly raising volumes. In the overland business, our focus was on growth and network expansion. The European hub system, launched in March 2007, already has considerably contributed to increased volume and strengthening of our market position.”
Klaus-Michael Kuehne, the company’s executive chairman, said that while 2007 was characterized by a favorable global economy and strong global trade, forecasts for 2008 are cautious.
'In view of these circumstances, we will intensify our efforts to improve internal processes and optimize cost management,” he said. “Our global presence and flexible structures should allow us to maximize overall growth opportunities, regardless of varying regional economic environments. In times of economic uncertainty, efficient supply chain processes are more crucial than ever, leading to increasing customer demand for the logistics services provided by Kuehne + Nagel. Against this background, we remain confident of the future performance of our business.'