For the first nine months of the year, Kuehne + Nagel saw earnings before taxes increase by 6 percent to CHF$561 million ($612.83 million) over the same period last year, despite reduced volume in its sea freight business.
Revenue rose from CHF$15.47 billion to CHF$15.71 billion.
In its sea freight business, reduced earnings derived from a weak project cargo market that overtook market share growth on the transpacific and transatlantic. However, sea freight’s earnings-to-profit ratio for the third quarter exceeded the company’s target of 30 percent.
On the air freight side, tonnage increased by 3.3 percent in the first nine months partly due to European traffic and increased routings to the Middle East. South America also proved to be an area of growth for the company. Pharmaceutical, automotive and aviation business all helped fuel air cargo growth.
Air cargo’s earnings-to-profit ratio stayed flat at 21.5 percent.
“We concentrate on profitable growth and are on good track to reach our goals. In seafreight, our most important business unit, we focused on the quality of business instead of volume growth by all means,” K+N’s Detlef Trefzger said in a statement. “In a demanding market environment we thus reached our profitability target in seafreight. Strict cost management will remain in place for the whole company and at the same time we will also continue to enhance the spectrum of solutions and the service quality for our customers.”