Kuehne and Nagel predicts better Q4 than 2008
20 / 10 / 2009
SWISS logistics group Kuehne + Nagel has predicted that its airfreight business will improve on last year’s figures in the fourth quarter. This follows on from steady recovery over the last quarter.
Chief financial officer, Gerard van Kesteren, said that final-quarter volumes would be higher compared with the same quarter last year with Christmas trade volumes expected to be significantly higher.
In a statement, the group said: “The international airfreight market saw a slight improvement in tonnages in the third quarter; therefore, overall cargo decrease slowed to 17 per cent in the first nine months of the year.
“Kuehne + Nagel increased its market share by intensifying sales activities and expanding its industry-specific solutions. Compared with the second quarter, [we] increased tonnage by seven per cent in the third quarter. For the nine months, [our] tonnage decline of 15.5 per cent was less than the overall market decline. Operational results decreased by 16.6 per cent compared with the previous year’s period, while the EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) margin, despite the third quarter’s rate increases, improved from 5.8 to 6.9 per cent.
Reinhard Lange, chief executive officer of Kuehne + Nagel International, said: “We are reasonably satisfied with our results for the first nine months. Our dual strategy has proven effective – we have successfully counteracted substantial volume declines through strict cost management and increased sales activities. As a result, we have continuously expanded our market share and over-proportionately benefited from the third quarter’s business stimulation.”