Kuehne + Nagel’s operating profit (EBIT) rose to CHF455 million in the first half of 2016 from CHF410m last year, despite a slight drop in turnover to CHF8.1 billion from CHF8.2bn.
In Contract Logistics, gross profit increased by 9.7 per cent in this period versus 5.1 per cent in the first quarter of 2016. Gross profit improved by 7.4 per cent compared to the previous year and EBIT from CHF 56 to CHF 70 million.
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. The EBIT-to-gross profit margin improved from 30.8 per cent in the first half of 2015 to 31.3 per cent and EBIT by 8.3 per cent to CHF 221 million.
Shrinking demand and excess capacity in the airfreight market resulted in margin pressure. Kuehne + Nagel managed to increase its tonnage by 2.9 per cent in the second quarter of 2016. Compared to the first six months of the previous year, Kuehne + Nagel increased tonnage by 1.3 per cent. The EBIT-to-gross profit margin, at 30.8 per cent, was slightly above the previous year’s level. EBIT improved by 8.1 per cent to CHF 147 million.
In the overland business, net turnover improved by 22.6 per cent and gross profit by 12.6 per cent. EBIT increased from CHF 14 million to CHF 17 million.
CEO Detlef Trefzger said: “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.”