Photo: Kuehne+Nagel
Kuehne+Nagel’s (K+N) airfreight business had a positive start to the year, with semiconductors and perishables leading the improvements.
The world’s largest airfreight forwarder saw air turnover improve by 13% year on year to Sfr1.8bn, earnings before interest and tax (ebit) was up 23% to Sfr116m and airfreight volumes improved by 5% to 514,000 tonnes.
The forwarder said improvements were led by its semiconductor and perishable business, as well as its investment in China-based Apex Logistics.
Meanwhile, automotive was a drag on performance.
”Excluding the automotive sector, the business unit gained market share across all industries and particularly in semiconductors,” K+N said in a press release. “New cool corridors for healthcare were opened between Brussels and Chicago as well as between Brussels and Singapore.”
At the company's recent capital markets day, it said that investment in semiconductor equipment is projected to grow at a compound annual growth rate (CAGR) of 8-9% between 2025 and 2028.
As well as benefitting from the growing semiconductor market, K+N would also have benefited from continued increases in the overall air cargo market.
According to data provider Xeneta, demand was up 2%, 3% and 5% year-on-year over the first three months of the respectively, while average spot rates improved by 17%, 10% and 6% over the first three months.
Overall, K+N saw revenues improve by 15% year on year to Sfr6.3bn, ebit was up 7% to Sfr402m and earnings increased 9% to Sfr303m.
Stefan Paul, chief executive of K+N International, said: “Kuehne+Nagel has had a strong start in the new financial year. We increased our market share, gained new customers, and also improved profitability.
"Despite the challenging global economic environment, the company achieved double-digit growth in net turnover. We remain well prepared and positioned to implement our strategic objectives.“
