Kuehne + Nagel International AG: Half year result
Kuehne + Nagel’s recent growth has moderated only slightly over the past six months, as seen through its half-yearly figures for the period Jan- July 2007 published last 29th July.
The headline profit figure, EBITDA (Earnings before Interest, Depreciation and Amortisation) which is the favored measure of the new logistics orientated K+N, grew by 12.6 pct compared to the first half of 2006, to CHF 467.9million on a turnover of CHF 9,968.3million, up 14.7pct . Net earnings grew by 27 pct. These figures are slightly below last year’s very high growth rates and suggest some tightening in margins.
K+N’s key sea freight business continues to grow strongly. Although a 15 pct increase in container volumes and a 13.6 pct increase in turnover reflect the buoyancy of the overall market, it claims it is still gaining market share. K+N admitted that margins were tightening yet still managed to return an operating profit growth of 15 pct .
Airfreight grew at an impressive 16 pct in terms of tonnage and 7.1 pct in turnover. Operational profit grew by 25pct and EBITDA margin was over 5pct .
Road and rail transport grew at 17.5 pct , but margins were much tighter with investment driving down EBITDA to CHF21.7million. However contract logistics jumped by 15.1 pct in terms of operational profits to CHF115million.
K+N indicated that it wants to grow its rail freight network business through acquisition in an attempt to improve its economy of scale. Six months ago it similarly indicated that it aimed to expand its road -freight network through acquisition; however it has yet to make a major purchase.
