Kuehne + Nagel posts considerably improved results in 2019 despite current state of the global economy

Kuehne + Nagel posts considerably improved results in 2019 despite current state of the global economy

(PRESS RELEASE) SCHINDELLEGI, Switzerland, 27-Feb-2020 — /EuropaWire/ — Leading transport and logistics company Kuehne + Nagel has reported, once again, considerably improved results in 2019, despite current state of the global economy and the unknown scope of the Coronavirus.

The company’s net turnover has seen an increase of 1.5% to CHF 21.1 billion (EUR 19.83 billion) and the gross profit has also increased by 3.5% to CHF 8.0 billion (EUR 7.52 billion) versus the previous year. EBIT was up 7.5% at CHF 1.1 billion (EUR 1.03 billion), exceeding the billion-CHF mark for the first time. In 2019, the earnings were up 3.6% at CHF 800 million (EUR 751.81 million).

Commenting on the Kuehne + Nagel financial statements for the 2019, Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, said:

“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.”

In seafreight, Kuehne + Nagel further grew its position as market leader during 2019 where its net turnover was up 4.6% at CHF 7.5 billion (EUR 7.05 billion) and gross profit was up by 3.8% at CHF 1.5 billion (EUR 1.41 billion). Thanks to the focused growth strategy and high-quality service, the business unit once again achieved growth in a stagnating market. A total of 4.9 million standard containers (TEU) were shipped, 171,000 TEU more than last year (up 3.6%).

Kuehne + Nagel’s EBIT in the seafreight has increased by 9.1% to CHF 456 million (EUR 428.70 million) YoY. The business unit restored the conversion rate (EBIT to gross profit ratio) to 29.6%, which is one of the top results in the seafreight sector.

When it comes to the airfreight in 2019, however, the drastic drop in demand, particularly in key European industries and the perishables business resulted in a decline in net turnover to CHF 4.7 billion (EUR 4.42 billion). Kuehne + Nagel’s airfreight volume has fallen 5.7% as compared to the previous year to 1.6 million tonnes.

Nonetheless, Kuehne + Nagel’s airfreight proved resilient in this challenging business environment thanks to the consistent expansion of the service portfolio, the focus on digital solutions, optimisation of the cost structure, and the successful integration of Quick International Courier. The unit posted gross profit of CHF 1.3 billion (EUR 1.22 billion), up 9.6%, whereas EBIT was down as compared to the previous year at CHF 329 million (EUR 309.43 million).

In 2019, Kuehne + Nagel has gained market share in the overland sector in a weakening market environment. Its overland business has grown 1.7% YoY to CHF 3.58 billion (EUR 3.37 billion) from CHF 3.52 billion (EUR 3.31 billion) while the company’s gross profit in the division increased by 3.0% to CHF 1.1 billion (EUR 1.03 billion). EBIT improved by 2.6% to CHF 78 million (EUR 73.38 million). Kuehne + Nagel’s overland business unit has also done couple of acquisitions in 2019 — Joebstl in Austria and Rotra in Belgium and the Netherlands while in South East Asia the business has launched new digital booking platform.

In the contract logistics, Kuehne + Nagel has seen its 2019 net turnover up by 2.8% YoY at CHF 5.4 billion (EUR 5.08 billion). The unit’s EBIT was at CHF 198 million (EUR 186.33 million) during the year.

Supporting the growth strategy in Asia and the increased liquidity this may require, the Kuehne + Nagel Board of Directors proposes a dividend per share of CHF 4.00 (EUR 3.76) to the Annual General Meeting on 5 May 2020.

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG on the company’s considerably improved results:

“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.”

The Kuehne + Nagel’s full-year result and annual report for the 2019 can be downloaded at https://2019-annual-report.kuehne-nagel.com.

Media contacts:

Dominique Nadelhofer
Global Head of Media Communications
dominique.nadelhofer@kuehne-nagel.com
+41 44 786 95 26

SOURCE: Kuehne + Nagel