Gross profit increased by 8 percent, earnings by 9 percent Schindellegi / CH - The Kuehne + Nagel Group was able to increase gross profit by 8 percent to CHF 3,257 million in the first six months of 2016 while net turnover slightly decreased. The operating result (EBITDA) grew by 10 percent to CHF 547 million. Earnings for the period improved by 9 percent to CHF 356 million compared to the previous year’s period. Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG: “The first half of 2016 has been shaped by different regional economic development trends. Global trade showed a lack of growth momentum. Our strategy to focus on organic growth and gaining market shares by offering industry-specific solutions once again led to increases in volumes and results. Our Group delivered a strong performance and has significantly improved gross profit, and therewith increased profit.”
Kuehne + Nagel Group First half-year
2016 2015
CHF million
Net turnover 8147 8225
Gross profit 3257 3018
Operational result (EBITDA) 547 497
EBIT 455 410
Earnings for the period 356 326
Seafreight In seafreight, Kuehne + Nagel continued to grow and, for the first time, succeeded in handling over one million TEU in one quarter. Compared to the first six month of the previous year, the Group increased its container volume by 5.8 percent. This growth well above market average was primarily a result of the larger volumes in the export business from Asia to Europe and the US. The LCL and reefer container businesses performed well. The EBIT-to-gross profit margin improved from 30.8 percent in the first half of 2015 to 31.3 percent and EBIT by 8.3 percent to CHF 221 million. Airfreight In the globalairfreight market shrinking demand and excess capacity resulted in margin pressure. In this challenging environment, Kuehne + Nagel managed to increase its tonnage by 2.9 percent in the second quarter of 2016. This was mainly due to the expansion of customer-specific services and industry solutions. Strong export business in Asia, the Middle East and Africa contributed equally to this development. Compared to the first six months of the previous year, Kuehne + Nagel increased tonnage by 1.3 percent. The sustainable profitability is reflected in the EBIT-to-gross profit margin, which at 30.8 percent was slightly above the previous year’s level. EBIT improved by 8.1 percent to CHF 147 million. Overland Substantial growth in net turnover and gross profit was achieved in the overland business unit in the second quarter of 2016. The fully integrated US-based ReTrans Group and the European business contributed considerably to the positive performance. Compared to the first six months of the previous year, net turnover improved by 22.6 percent and gross profit by 12.6 percent. EBIT increased from CHF 14 million to CHF 17 million. Contract Logistics The successful implementation of new businesses accelerated in the second quarter of 2016. As a result, gross profit increased by 9.7 percent in this period versus 5.1 percent in the first quarter of 2016. Compared to the first six months of the previous year, the net turnover increase of 6.9 percent outperformed market growth. Gross profit improved by 7.4 percent compared to the previous year and EBIT from CHF 56 to CHF 70 million. Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG: “In the second quarter, the Kuehne + Nagel Group improved its performance and managed to expand market shares in a heterogeneous economic environment. Based on its successful strategic focus, we are confident that we can continue the momentum in volume and profit into the second half of the year from today’s perspective.”