Kuehne + Nagel H1 EBITDA 2.1 percent betterStaff writer ▼ | July 15, 2015
With net turnover and gross profit slightly decreasing, the Kuehne + Nagel Group improved its operational result (EBITDA) by 2.1 percent in the first half of 2015.
Kuehne + Nagel Group Earnings increased by 4.2 percent
In seafreight Kuehne + Nagel gained market shares in the U.S. import trade lanes as well as in the LCL (Less-than-Container Load) business. In comparison to the previous year’s period, however, container volume decreased by 1.8 percent due to the concentration on higher margin business and the continuous weakness of market volumes in the Asia-Europe trade lanes.
Profitability clearly improved in this business unit: Gross profit per TEU increased by 4.4 percent and the EBIT-to-gross profit margin (conversion rate) improved from 29.1 percent to remarkable 30.8 percent. In comparison to the previous year’s period EBIT increased by 8.5 percent.
The excellent performance in airfreight continued. With a 5.2 percent increase in tonnage Kuehne + Nagel grew faster than the market. Significant volume increases were realised in exports from Europe, North America and Asia.
In addition, the expansion of services for customers from the segments perishables, pharma and industrial goods contributed to the favourable development.
The conversion rate improved from 27.8 percent in the first half year 2014 to 30.6 percent in the first six months of 2015. EBIT increased in comparison to the previous year’s period by 11.5 percent.
The result in the overland business remained stable. Whereby net turnover declined by 16.6 percent due to the discontinuation of project business and lower rates as a result of lower diesel price, the reduction in earnings, however, was almost compensated.
EBIT decreased from CHF 16 million in the previous year’s period to CHF 14 million in the first half year of 2015. The recently announced acquisition of ReTrans, a U.S.-based provider of multimodal transportation management solutions, will expand both the business base and the product portfolio.
Volume reductions in existing business with customers in Western Europe and the restructuring of customer businesses in the United Kingdom negatively affected the results.
Furthermore, the strong Swiss Franc influenced the development of net turnover and gross profit disproportionally in comparison to other business units of the Group.
EBIT decreased by CHF 14 million to CHF 56 million compared with the same period in the previous year. ■