Kuehne+Nagel Q3 earnings down 53%

Kuehne+Nagel reported a 53 percent decline in earnings at CHF 321 million ($360 million) for the third quarter ended September 30, 2023 on 61 percent decline in revenue at CHF 1.9 billion ($2 billion).

Air logistics EBIT declined 58 percent to CHF 136 million ($152 million) on 46 percent decline in turnover at CHF 1.5 billion ($1.7 billion).

The air logistics business reported a 23 percent decline in cost/100 kg year-over-year, says an official release.

"Accelerated cost reduction offset gross profit decline, and unit EBIT was stable due to cost management focus. Absolute volume was slightly higher, and year-on-year decline was in line with the market. Signs of recovery have been noticed in European export trades," the release added.

Net turnover was CHF 5 billion ($5.6 billion) and EBIT CHF 429 million ($480 million) in the first nine months of 2023. Between January and September 2023, around 1.5 million tonnes of air freight were handled. The perishables and aerospace segments performed particularly well.

"In recent months, Kuehne+Nagel Air Logistics invested in its infrastructure for future growth. Among other things, the business unit opened a new air freight gateway at Paris Charles de Gaulle Airport with around 13,000 sqm of storage space and direct tarmac access."

Acquisition of Morgan Cargo is expected to close in Q422023.

Sea logistics - volume trend positive
Sea logistics reported a long-term shift to higher yielding volumes, and "intensified cost measures reduced cost per TEU by 17 percent YoY in Q32023."

Kuehne+Nagel has reported signs of recovery in volumes on Transpac and South American trades.

While EBIT declined 53 percent to CHF 236 million ($264 million), revenue was down 61 percent to CHF 1.9 billion ($2 billion).

Nine-months results
Kuehne+Nagel reported a 41 percent decline in turnover at CHF 18.2 billion ($20.4 billion) for the first nine months of 2023, and earnings declined 49 percent to CHF 1.2 billion ($1.3 billion).

"The Kuehne+Nagel Group achieved good results in the months January to September 2023 in a market environment that remained challenging. The pandemic-related special economic situation of 2021 and 2022 continued to distort the year-on-year comparison of all key figures. EBIT for the first nine months of 2023 almost doubled compared to pre-pandemic levels (EBIT Q1-Q3 2019: CHF 794 million)."

Stefan Paul, CEO, Kuehne+Nagel says: "The Kuehne+Nagel Group performed well in the third quarter of 2023 even though the hoped-for economic recovery failed to materialise. We gained market share and secured our yields. We achieved important successes in the implementation of the strategic Roadmap 2026, particularly in the area of renewable energy and in the growth markets of Asia. In the final quarter of 2023, we will continue to focus on cost control, which is firmly embedded in our corporate culture."