Global logistics company Kuehne + Nagel reported “unsatisfactory results” for the first quarter of 2012, as cost increases, lower margins, and a one-off antitrust fine of CHF65 million (US$70.3 million) levied by the European Commission all ate into its profits.
Net earnings dropped 14.2 percent to CHF133 million for the first quarter of the year, including the one-off item to CHF68 million, the freight forwarder said in a news release on April 16, 2012.
Turnover remained stable at CHF4.8 billion compared to the previous year’s period (currency adjusted: increase of 5.4 percent). Gross profit improved by 3 percent (currency adjusted by 8.1 percent) to CHF1.5 billion.
The operational result (EBITDA) declined by 12.4 percent to CHF218 million, including the one-off item for the antitrust fine to CHF153 million.
“In the first quarter of 2012 we had to cope with a number of adverse factors,” said Reinhard Lange, CEO of Kuehne + Nagel. “Our investments in growth initiatives resulted in considerable cost increases.”
He said they plan to counteract this trend with “strict cost control and measures to improve productivity.”
The company said profit margins declined in sea and airfreight and they had to cope with one-off charges due to a high antitrust fine, which was reported on March 28, 2012. “Nevertheless, we achieved growth above market average,” Lange said.
He added: “As a consequence of the experiences made in the first quarter of 2012, we have intensified our cost management. We are confident that the measures implemented as well as solid growth will contribute to an improvement of results in the second half of the year.”
Photo: Kuehne + Nagel
