Supply chain company Kuehne + Nagel said turnover grew by 12.4 percent and gross profit by 6.9 percent in the third quarter of this year against the same period the previous year due to increases in sea freight and airfreight volumes and to cost cutting.
Operational result improved by 3.1 percent for the same period.
During the first nine months of 2012, turnover increased by 6 percent to CHF15.47 billion (US$16.56 billion), and gross profit by 4 percent to CHF4.55 billion compared to the same period last year. Operational result declined by 5.6 percent to CHF687 million.
Excluding the EU antitrust fine in the first quarter, net earnings for January to September declined by 7.4 percent to CHF423 million, and including the one-off item, to CHF358 million.
Earnings before interest and taxes climbed to CHF181 million from CHF176 million a year earlier, the Switzerland-based company said in an e-mailed statement.
“The improvement of results in the third quarter makes us confident of reaching the profitability targets we have set ourselves for the full business year 2012,” said Reinhard Lange, CEO of Kuehne + Nagel. “Intensified cost management as well as a continuous improvement of the services for our customers will be the foundation for profitable growth.”
Meanwhile, rival Panalpina said it expects profits to fall in the third quarter as a result of “disappointingly weak air freight volumes and a higher cost base.”
Earnings before interest, taxes, depreciation and amortization for the third quarter of 2012 are forecast to range from CHF15 million (US$16 million) to CHF20 million, which already incorporate a one-off extraordinary charge of CHF12 million.
Detailed financial results and an outlook will be released on November 2, 2012, the company said in a statement.
Panalpina said its earnings were substantially affected by the weak airfreight and European markets, both of which the Swiss forwarder has a prominent presence in. Its airfreight division accounts for almost 50 percent of the company’s net forwarding revenue, and around two-thirds of the airfreight volumes come from trade lanes involving Europe.
“During the course of the third quarter it became evident that the expected volume recovery in airfreight in the second half of 2012 would not materialize,” said CEO Monika Ribar.
Photo: Kuehne + Nagel
