Restructuring of selective projects in the UK hit profits at Kuehne+Nagel’s Contract Logistics business although air and seafreight showed growth, the group said in its results for the first nine months of 2015.
Adverse currency effects also affected Contract Logistics EBIT, which was down CHF21 million (£14.2m) to CHF86m (£58.3m) from the year before. Even so, the group said the division had won numerous new contracts during the period.
K+N said that profitability improved substantially in the Seafreight business with gross profit per TEU rising 4.4 per cent. The company said it had been able to exploit growth opportunities in the US import business from Europe and Asia which compensated for the continuous market weakness in exports from Asia to Europe. As a result EBIT was up by 11.7 per cent.
K+N increased airfreight volumes by 5.1 per cent in a static market and the division’s EBIT was up by 11 per cent.
Turnover in the overland business fell by 12.1 per cent owing to the discontinuation of project business and lower rates as a result of lower diesel prices. K+N acquired ReTrans in the US.
Group operating profit rose by 4.6 to CHF777m (£526.8m) for the first nine months, despite a 4.4 per cent fall in turnover to CHF12.5 billion (£8.5bn).
CEO Dr Detlef Trefzger said: “In the third quarter we further improved our results, especially in seafreight and airfreight. The development in overland is solid and the optimisation of selective projects in contract logistics is proceeding as planned.
“Our strong focus on innovative logistics services and strict cost management enabled growth in profits in a demanding market environment. The performance in the first nine months confirms our market strategy and we see our group on the right track.”