K+N: Third quarter airfreight market “remained tense”
18 / 10 / 2016
Kuehne + Nagel (K+N) reported that the global airfreight market "remained tense" in the third quarter and added that pressure on margins continued due to "shrinking demand and further capacity increases".
Against this trend, the Switzerland-based global logistics giant grew its air cargo tonnage by 3.8% and gross profit per 100 kilos by 1.4%, due mainly to "further scaling its industry-specific solutions".
Compared to the first nine months of the previous year, K+N increased its airfreight volume by 2.2%. Gross profit rose by 6.4% and the EBIT-to-gross profit margin remained at last year’s high level at 30.7% (2015: 30.0%). EBIT improved by 8.9% to SFr220m.
Commenting on the group’s combined logistics results for the first nine months of 2016, Detlef Trefzger, chief executive of K+N International, said: “Cautious consumer behaviour in parts of the European Union and the US resulted in lower export volumes in Asia.
"In addition, the tougher situation in the shipping industry increased pressure on seafreight margins. By maintaining our Group’s focus on industry-specific logistics solutions and high-quality services, we succeeded in achieving growth and stable results despite the demanding market environment.
"We are confident about the business development in the fourth quarter of 2016.”