K+N's air cargo market share gain not reflected in bottom line
- Latest News
- Saturday, 22 April 2017
Switerland-based freight forwarder Kuehne+Nagel (K+N) says its 2017 Q1 air volumes improve by 15.5 per cent year-on-year to 350,000 tons, while airfreight turnover increased by 12.6 per cent on a year earlier to SFR1.1 billion.
However, despite strong growth in pharma, perishables and e-commerce, air cargo earnings before interest and tax (EBIT) for the period were down 1.4 per cent on a year earlier at SFR72 million.
In all, net turnover for the first quarter increased by 7.2 per cent year on year to SFR4.3 billion but net earnings decreased by 2.4 per cent to SFR165 million and EBIT was down by 3.7 per cent to SFR209 million.
Seafreight volumes also improved, but margins came under pressure.
K+N chief executive Detlef Trefzger said: “The good result in the first quarter of 2017 supports our optimistic outlook for a continued successful business development this year. In seafreight and airfreight we are experiencing strong growth and have gained significant market shares.
“This increase in volume and productivity as well as cost control mitigated the ongoing pressure on margins.
“Our strategic approach for overland and contract logistics led to a further improvement in results. We have established a good basis for the second half of 2017.”
