Kuehne + Nagel Reports Improved Results in 2019

Kuehne + Nagel has reported an improvement to its results for the 2019 business year. Net turnover increased by 1.5% to CHF 21.1 billion and gross profit also increased by 3.5% to CHF 8.0 billion against the previous year. EBIT was up 7.5% at CHF 1.1 billion, exceeding the billion-CHF mark for the first time. Earnings for the year were up 3.6% at CHF 800 million.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, comments: “In a changing market, we continued to see our strategy yield success. In seafreight and overland, our focus on customer service, cost-effectiveness, operational systems, and digitalisation has once again paid off. We managed to keep results stable in the more volatile airfreight business. In contract logistics, the restructuring of the product, customer and real estate portfolios led to a considerable improvement in results.”

Seafreight

CHF million	2019	2018	Change
Net turnover	7,457	7,129	+4.6%
Gross profit	1,539	1,482	+3.8%
EBIT	456	418	+9.1%

Kuehne + Nagel’s net turnover was up 4.6% at CHF 7.5 billion and gross profit was up by 3.8% at CHF 1.5 billion. A total of 4.9 million standard containers (TEU) were shipped, 171,000 TEU more than last year (up 3.6%).

EBIT increased by 9.1% to CHF 456 million against the previous year. The business unit restored the conversion rate (EBIT to gross profit ratio) to 29.6%, one of the top results in the sector.

Airfreight

CHF million	2019	2018	Change
Net turnover	4,653	4,870	(4.5%)
Gross profit	1,317	1,202	+9.6%
EBIT	329	355	(7.3%)

In the 2019 business year, the drastic drop in demand for airfreight, particularly in key European industries and the perishables business, drove a decline in net turnover to CHF 4.7 billion. Airfreight volume at Kuehne + Nagel fell 5.7% against the previous year to 1.6 million tonnes.

Overland

CHF million	2019	2018	Change
Net turnover	3,586	3,526	+1.7%
Gross profit	1,121	1,088	+3.0%
EBIT	78	76	+2.6%

In the 2019 business year, net turnover for overland grew 1.7% against the previous year at CHF 3.6 billion and gross profit increased by 3.0% to CHF 1.1 billion. Kuehne + Nagel gained market share in a weakening market environment.

K+N says the business unit added to the European network with the acquisition of Joebstl in Austria as well as Rotra, a leading road transport provider in the Belgium and the Netherlands. Business with large-scale customers continued to drive growth in North America, whilst the intermodal business weakened because of a falling oil price. The business unit expanded its presence in South East Asia with the launch of a new digital booking platform. EBIT improved by 2.6% to CHF 78 million.

Contract logistics

CHF million	2019	2018	Change
Net turnover	5,398	5,249	+2.8%
Gross profit	4,004	3,937	+1.7%
EBIT	198	138	+43.5%

In the 2019 business year, net turnover in contract logistics was up 2.8% versus the previous year at CHF 5.4 billion; the restructuring of the product and customer portfolio delivered results. The real estate portfolio was reviewed and adapted accordingly. Operationally, productivity gains and better service quality led to a sustainable improvement of results.

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG, says: “For the sixth time in a row, Kuehne + Nagel has considerably improved its results. With the current state of the global economy, that is anything but a given. This year, Kuehne + Nagel celebrates 130 years since it was established. Over this long history and through the efforts of many people, the company turned into a truly global provider of logistics services. Setting aside the unknown scope of the Coronavirus, the Board of Directors is looking ahead with confidence to the 2020 business year and beyond. In the future, we will be focusing particularly on growth in Asia.”