In the first quarter (Q1) of 2019 Kuehne + Nagel again increased net turnover, gross profit and EBIT and its air freight division achieved higher margins but lower tonnage.
Overall net turnover for Q1 came in at CHF 5,237 billion (US$5.1 billion), up 7.7 per cent on 2018, while EBIT was CHF 242 million, up 2.5 per cent on Q1 last year but earnings for the period were down 1.6 per cent to CHF 181 million.
Following significant increases in tonnage in the previous years, the airfreight volume dropped slightly by 3.1 per cent to 409,000 tonnes in Q1 which the freight forwarder said was against the backdrop of a declining market.
Kuehne + Nagel said the business unit developed nearly in line with the overall airfreight market, which declined by two to three per cent.
Since the start of the year, the Swiss forwarder has integrated the business operations of Quick International Courier – a time-critical transportation and logistics solutions company for the pharma & healthcare and aviation industries – which it said contributed to a significant increase in gross margin.
Air freight EBIT reached CHF 80 million, which was almost consistent with the very high level of the previous year.
Kuehne + Nagel International chief executive officer, Dr. Detlef Trefzger said: “Kuehne + Nagel got off to a good start in 2019. Once again, we increased our net turnover, gross profit and EBIT. However, we find ourselves in an environment in which global economic growth is noticeably slowing.
“In this volatile market environment we are well positioned. Consistent with our business strategy, we focus on introducing new digital platforms and highly specialised industry solutions. For 2019, we plan to remain on course to grow as a Group and further increase our results.”
|Kuehne + Nagel Group||1st quarter 2019||1st quarter 2018||Variance|
|Operational result (EBITDA) *)||418||289||+44.6%|
|Earnings for the period||181||184||-1.6%|