The Kuehne + Nagel Group was able to increase gross profit by 8 per cent to CHF 3,257 million in the first six months of 2016 while net turnover slightly decreased to CHF 8,174 million. The operating result (EBITDA) grew by 10 per cent to CHF 547 million. Earnings for the period improved by 9 per cent to CHF 356 million compared to the previous year’s period.
Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “The first half of 2016 has been shaped by different regional economic development trends. Global trade showed a lack of growth momentum. Our strategy to focus on organic growth and gaining market shares by offering industry-specific solutions once again led to increases in volumes and results. Our Group delivered a strong performance and has significantly improved gross profit, and therewith increased profit.”
In seafreight, Kuehne + Nagel continued to grow and, for the first time, succeeded in handling over one million TEU in one quarter. Compared to the first six month of the previous year, the Group increased its container volume by 5.8 per cent. This growth well above market average was primarily a result of the larger volumes in the export business from Asia to Europe and the US. The LCL and reefer container businesses performed well.
In the global airfreight market shrinking demand and excess capacity resulted in margin pressure. In this challenging environment, Kuehne + Nagel managed to increase its tonnage by 2.9 per cent in the second quarter of 2016. This was mainly due to the expansion of customer-specific services and industry solutions. Strong export business in Asia, the Middle East and Africa contributed equally to this development. Compared to the first six months of the previous year, Kuehne + Nagel increased tonnage by 1.3 per cent.
Substantial growth in net turnover and gross profit was achieved in the overland business unit in the second quarter of 2016. The fully integrated US-based ReTrans Group and the European business contributed considerably to the positive performance. Compared to the first six months of the previous year, net turnover improved by 22.6 per cent and gross profit by 12.6 per cent.
The successful implementation of new businesses accelerated in the second quarter of 2016. As a result, gross profit increased by 9.7 per cent in this period versus 5.1 per cent in the first quarter of 2016. Compared to the first six months of the previous year, the net turnover increase of 6.9 per cent outperformed market growth.