ACW - Air Cargo Week
K+N reports ‘unsatisfactory results’
Kuehne + Nagel, the Switzerland-based freight forwarder, has posted what it describes as "unsatisfactory results" for the first quarter of 2012, in spite of continued growth in traffic.
The forwarder’s air freight volumes rose by 4 percent year-on-year, performing significantly better than the 3 percent contraction seen during the period in the global air freight market as a whole.
Business on the South America, intra-Asia and Asia-Pacific to Middle East sectors has been encouraging, it said.
However, K+N was fined CHF65 million (US$10 million) by the EU in March, following antitrust allegations pertaining to its air freight activities.
This, in combination with other challenges, led to a decline in the operational result to CHF153 million ($166 million) for the period under review.
"In the first quarter of 2012 we had to cope with a number of adverse factors," said CEO Reinhard Lange. "Our investments in growth initiatives resulted in considerable cost increases. We will counteract this trend with strict cost control and measures to improve productivity.
"Furthermore, profit margins declined in sea and air freight. In addition, there are one-off charges due to a high antitrust fine... Nevertheless, we achieved growth above market average."
Lange added that with "intensified" cost management measures in place, and with solid growth in volumes expected, he anticipates an improvement in K+N’s results in the second half of the year.