K&N: good results despite USCO
Kuehne & Nagel, the Swiss based forwarding and logistics provider, has become the latest company to release its 2002 results. Overall the company performed well in a difficult economic environment, increasing turnover by 4.4% to CHF8,805m (€5,963m) and operating profits (EBITA) by 15.6% to CHF304m (€206m).
The international forwarding division was primarily responsible for the improved performance due to an upturn in freight volumes. The sea freight unit reported an increase in operating profits of 12.4% and air freight profits leapt by 34%. The division benefited in particular from the rise in volumes caused by the buoyant export/import market in the Pacific Rim region and the growing industrialization of China.
Contract logistics also performed well with revenues increasing to CHF1,157m (€783.5m) from CHF941.4m (€637.2m) in 2001 as a result of organic growth and the full year consolidation of US subsidiary USCO. However the US unit was also the main driver behind a fall in operating profits by 8.3%, canceling out increased profitability in the European logistics business. The company has been forced to write off CHF206m (€139.5m) goodwill associated with the acquisition although management claims that the situation has now stabilized.
