Kuehne & Nagel achieves goals in 2003
Kuehne & Nagel, the Swiss based logistics and freight forwarding company, has released its full year figures for 2003. Following a difficult year in 2002, the company was able to post much stronger results right across the board. Net revenues increased from CHF6,946.7m (€4,445m) to CHF7,532.3m (€4,820m), a rise of 8.4%. Its operating profit rose from CHF276.8m (€177m) to CHF315.9m (€202m), a rise of 14.1%. Operating margins increased from 4% to 4.2%.
Some of the highlights of the results of the forwarding division included an 11.5% increase in revenues for sea freight. Although turnover fell in the air freight unit, profits rose by 23%. Its overland freight unit saw turnover jump by 45.7% to CHF749.8m (€479m). Acquisition of German company Pracht Spedition and a stake in WM Holding in Germany will increase this growth in 2004.
In contract logistics, the company managed to turnaround the performance of its US division, USCO. In the previous year the unit had been responsible for a significant drop in profits. The logistics unit in Europe returned stable results.
The improved performance of the former USCO business contributed to a 39.5% increase in operating profit in the Americas region. Despite a more difficult market environment in Europe, revenue increased by 14% and operating profit by 8.3%. The Asia Pacific region saw revenues grow by 12.2% and operating profits by 13.5%.
Management stated that in the year it had managed to achieve its three key strategic goals. This involved expanding the forwarding network whilst improving its profitability; stabilizing its North American contract logistics operations (its acquisition USCO) and developing its road freight division.
