Kuehne+Nagel Reports Q3 Airfreight Challenges, Highlights Cost Reduction
Airfreight forwarder Kuehne+Nagel (K+N) suffered the impact of a difficult market as it reported a further decline in year on year volumes in the third quarter.
K+N saw its airfreight volumes drop 9% year on year in the third quarter to 493,000 tonnes.
Revenues and profits also declined. Air net turnover declined by 46% to Sfr1.5bn, and earnings before interest and tax (ebit) fell 58% to Sfr136m.
However, the figures showed an improvement against the second quarter of the year, which ended with a sharper drop across the same metrics.
The company said its results were “in line with market” performance overall.
It added that its efforts to reduce costs “offsets gross profit decline”, and that cost reduction efforts had driven down cost per 100kg by 23% year on year in the third quarter.
Looking to the positives, it said that European export trades showed signs of recovery, and noted that the acquisition of Morgan Cargo would likely be accounted for in its fourth quarter results.
The company also pointed out it has recently invested in infrastructure to aid growth. “In recent months, Kuehne+Nagel Air Logistics invested in its infrastructure for future growth. Among other things, the business unit opened a new air freight gateway at Paris Charles de Gaulle Airport with around 13,000 sq m of storage space and direct tarmac access.”
Overall Group third quarter air net turnover was down 45.5% to Sfr5.3bn, ebit was down 52% to Sfr446m and earnings dropped 53% to Sfr321m.
Stefan Paul, chief executive of K+N said: “The Kuehne+Nagel Group performed well in the third quarter of 2023, even though the hoped-for economic recovery failed to materialise. We gained
market share and secured our yields.
“We achieved important successes in the implementation of the strategic Roadmap 2026, particularly in the area of renewable energy and in the growth markets of Asia. In the final quarter of 2023, we will continue to focus on cost control, which is firmly embedded in our corporate culture.”