The Kuehne + Nagel Group has announced an increase of gross profit by 8% to CHF 3,257 million in the first six months of 2016 while net turnover slightly decreased.
The operating result grew by 10% to CHF 547 million. Earnings for the period improved by 9% to CHF 356 million compared to the previous year’s period.
Dr. Detlef Trefzger, CEO, Kuehne + Nagel International AG: “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.”
Kuehne + Nagel is split into four profitable sectors: seafreight, airfreight, overland and contract logistics, each has impacted the Group's first half gross profits.
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%.
In the global airfreight market shrinking demand and excess capacity resulted in margin pressure. In this challenging environment, Kuehne + Nagel managed to increase its tonnage by 2.9% in the second quarter of 2016. This was mainly due to the expansion of customer-specific services and industry solutions. Strong export business in Asia, the Middle East and Africa contributed equally to this development.
Substantial growth in net turnover and gross profit was achieved in the overland business unit in the second quarter of 2016. The fully integrated US-based ReTrans Group and the European business contributed considerably to the positive performance. Compared to the first six months of the previous year, net turnover improved by 22.6% and gross profit by 12.6%.
The successful implementation of new businesses accelerated in the second quarter of 2016. As a result, gross profit increased by 9.7% in this period versus 5.1% in the first quarter of 2016. Compared to the first six months of the previous year, the net turnover increase of 6.9% outperformed market growth. Gross profit improved by 7.4% compared to the previous year.
Dr. Joerg Wolle, Chairman of the Board of Directors, Kuehne + Nagel International AG: “In the second quarter, the Kuehne + Nagel Group improved its performance and managed to expand market shares in a heterogeneous economic environment. Based on its successful strategic focus, we are confident that we can continue the momentum in volume and profit into the second half of the year from today’s perspective.”