Kühne & Nagel reports steady profit rise

Sea freight is one the cornerstones of Kühne & Nagel's worldwide business. Kühne & Nagel

The transport and logistics group, Kühne & Nagel, has reported an 11.8 per cent rise in net income in the first half of the year to SFr82.2 million ($60.9 million).

This content was published on July 28, 2003 minutes

The company said turnover had increased by 6.6 per cent to SFr4.5 billion.

However, the company’s operation result was 3.3 per cent below that of the previous year, largely due to the strength of the Swiss franc.

“In light of the varying market conditions and of the negative currency effect, we are pleased with the result that we have obtained in the first half of 2003,” said chief executive Klaus Herms in a statement.

The stock market reacted favourably to the news. The share price rose by more than five per cent in early morning trading to SFr108 from Friday’s close of SFr102.75.

The company, headquartered in Schindellegi, canton Schwyz, said its International Forwarding business unit had achieved another good result, in spite of an intensely competitive environment, marked by unstable freight rates and bottlenecks in capacity.

The operational result rose by 3.6 per cent to SFr122.5 million.

Declining margins

Seafreight saw declining margins and increased costs due to volume growth of almost 20 per cent. The operational result was down 6.8 per cent at SFr70.1 million.

An improvement was made in the airfreight business, with the operational result 21.4 per cent up at SFr41.4 million.

Executive chairman Klaus-Michael Kühne said the company’s ability to add value to global firms operating in the trade and industry sectors, coupled with its rapid adjustment to new market conditions, provided “solid foundations” for a “further favourable development” of turnover and profit.

Profit at Kühne & Nagel fell to zero in 2002 after the company took a one-off SFr206 million goodwill write-off.

Saurer back in the black

In another business development on Monday, the Saurer manufacturing group said that it had returned to the black in the first half and forecast higher full-year results.

A statement from Saurer headquarters in Arbon reported that the company made a first-half profit of SFr39.9 million ($29.6 million), compared with a loss of SFr9.6 million a year ago.

First-half sales rose by 13 per cent to SFr1.26 billion, while order intake increased by four per cent to SFr1.42 billion.

Performance in Saurer’s synthetic fibre division was particularly pleasing, while the automotive business saw sales stagnate and margins decline, the company said.

The firm said 12 new products would be introduced worldwide this year in its textile machine unit, further supporting its claim to be the leading full service supplier in the segment.

Saurer last year made a net profit of SFr49 million after posting a loss of SFr76 million in 2001.


Key facts

Kühne & Nagel has posted a net income of SFr82.2 million for the first half of 2003.
The company's International Forwarding business unit achieved another good result and performance improved in its airfreight division.
Also on Monday, the Swiss manufacturing group, Saurer, reported a first-half profit of SFr39.9 million, compared with a loss of SFr9.6 million a year ago.

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