K+N sees airfreight turnover and profits fall in first quarter

Both airfreight-related turnover and profit fell year on year in the first quarter of 2024 for Kuehne+Nagel (K+N), contributing to some disappointing results across the business.

Across K+N, turnover was down by 18% over the first quarter of 2023, gross profit by 13%, and the figures for K+N’s Air Logistics segment were somewhat representative of the decline across the business.

Net turnover of Air Logistics in the first quarter of 2024 was just less than CHF1.6bn, with an earnings before interest and taxes (EBIT) figure of CHF94m.

However, K+N handled 491,000 tons of airfreight over the three months up to the end of March 2024, 3.4% higher than in the same quarter of 2023.

Source: K+N

During the period, a new temperature-controlled area was added to K+N Air Logistics gateway at New York’s JFK Airport. With a total storage space of 7,200 sq m, the location at JFK will mean the facility can play “a crucial role in further developing healthcare logistics in the United States”, K+N declares.

Results across the K+N business were lower than expected, partially because of negative exchange rate effects of 3% relative to 2023.

Source: K+N

As for Air Logistics, the financial results were also down year on year within K+N’s Sea Logistics, Road Logistics and Contract Logistics segments.

Stefan Paul, chief executive of K+N, commented: “In a challenging environment, Kuehne+Nagel started the business year 2024 with solid but lower year-over-year results.”

And he continued positively: “Our focus on efficiency and streamlined structures allowed us to reduce costs per unit by 12% in Sea Logistics and 14% in Air Logistics.”

Reporting restructuring

In other K+N news, earlier this month (April), the company revealed that it has moved to direct reporting among its country organisations.

The regional structure has been discontinued and responsibilities integrated into K+N’s group functions as appropriate. Cluster and national managers report directly into the management board of K+N.

The change is expected to simplify responsibilities, thereby enabling K+N’s business and functional units to adapt their strategy in line with rapidly changing market developments and implement business decisions more quickly.

It will also ensure greater global consistency as well as customer proximity, K+N said.

Paul observed that, “By discontinuing the regional structure, we have laid the foundations for further growth and enabled more direct access to our customers worldwide.”

K+N switches to direct reporting for country organisations

E-commerce and perishables lift K+N after Q4 airfreight volume decline