Operating profit (EBIT) slipped at Kuehne + Nagel in the first quarter despite a 7.2 per cent rise in turnover. EBIT was CHF209 million compared to CHF 207m in the first quarter of 2016.
In seafreight Kuehne + Nagel increased volumes by nine per cent to more than one million TEU, which it reckons is twice as fast as the overall market. But margins continued to remain under pressure and thus were under the previous year’s level. Airfreight volumes increased by 15.5 per cent to 350,000 tons.
Contract Logistics was a particularly strong performer with turnover up 6.8 per cent and EBIT up 12.1 per cent.
Turnover in the Overland business was up five per cent with higher volumes in the groupage, full truckload and intermodal businesses and the increased demand for industry-specific solutions, particularly for the pharma and the expo & event sectors contributed to the positive development.
Chief executive Detlef Trefzger said: “In seafreight and airfreight we are experiencing strong growth and have gained significant market shares. This increase in volume and productivity as well as cost control mitigated the on-going pressure on margins. Our strategic approach for overland and contract logistics led to a further improvement of results. We have established a good basis for the second half of 2017.”