Kuehne + Nagel Group half-year results 2013

Improvement of results in the second quarter 2013 as planned Schindellegi / CH, July 15,  2013 - After a positive trend in the first three months of the year, the result development gained momentum in the second quarter of 2013. Compared to the previous year second quarter, the Kuehne + Nagel Group achieved an 8.1% increase in EBT.

During the first six months of 2013, turnover increased by 3.3% to CHF 10,394 million and gross profit by 2.6% to CHF 3,112 million. The operational result (EBITDA) improved to CHF 466 million and EBT to CHF 371 million. Net earnings amounted to CHF 289 million (2012: CHF 214 million).

After a strong increase of freight volumes in April 2013, growth slowed down again to a moderate level in the following two months. Overall, Kuehne + Nagel increased container volumes by 3% in the first six months of 2013. In particular, the company performed well in the intra-Europe and intra-Asia trades.

Volumes stagnated in the declining Asia-Europe traffic, while, contrary to the market trend, increases were achieved in the transpacific tradelanes. As a result of moving the focus from top-line growth to profitability, Kuehne + Nagel gross profit margin in seafreight remained stable despite continuously declining freight rates.

In the second quarter of 2013 EBIT-to-gross profit margin improved to 29.9% (first quarter 2013: 28.6%). On a six months comparison, EBIT conversion was at the 2012 level. EBITDA improved by 1.0% compared to the same period of the previous year. In a worldwide stagnating airfreight market Kuehne + Nagel increased tonnage by 3.7% in the first half of the year. Also in this business unit highest volume growth was recorded in April 2013.

The concentration on specific airfreight solutions for the pharmaceutical, automotive and aviation industries as well as volume increases in the European, North American and Asian export business contributed to the favorable development. In the second quarter EBIT-to-gross profit margin improved to 25.6% (first quarter 2013: 24.2%). On a six months comparison EBITDA improved by 7.8%.

The continuous implementation of the location master plan as well as the company-wide concentration on global customers resulted in a considerable increase in profitability in the second quarter of 2013. In the first six months net turnover increased currency adjusted by 2.8%. Subsequently, EBITDA grew by 19.4%; the EBITDA margin improved from 3.3% in the first half of 2012 to 3.8% in the same period of 2013. < Korea Shipping Gazette >