Kuehne & Nagel posts 27% jump in Q2 profit
Kuehne & Nagel International AG, the world's biggest sea-freight forwarder, said second-quarter profit jumped 27 per cent as air and ocean shipments increased.
Eyeing acquisitions: Kuehne & Nagel is looking to acquire competing delivery companies as it expands in Europe, says its chairman Klaus-Michael Kuehne
Net income rose to 135.1 million Swiss francs (S$169 million), or 1.1 francs a share, from 106.5 million francs, or 90 centimes, a year earlier, the Schindellegi, Switzerland-based company said yesterday in a statement.
Analysts surveyed by Bloomberg News expected profit of 134 million francs. Sales climbed 16 per cent to 5.1 billion francs.
Kuehne & Nagel makes most of its profit-arranging shipment of goods by sea and boosted sales as exports and imports grew.
The International Monetary Fund expects world trade volume to gain 7 per cent this year.
Kuehne & Nagel competes with Panalpina Welttransport Holding Ltd and Deutsche Post AG's DHL division.
The company's sea freight and air freight businesses 'performed very strongly', Axel Funhoff, an analyst at ING Equity Markets in Brussels, said. Air freight volumes in particular were 'surprisingly strong'.
Shares of Kuehne & Nagel fell as much as 3.2 francs, or 2.6 per cent, to 119.6 francs and were down 2.3 per cent at 9.25am in Zurich. The stock has gained 35 per cent this year, valuing the company at 14.4 billion francs.
Gross profit, which the company defines as sales minus taxes, Customs and shipping fees to third parties, increased 17 per cent to 1.49 billion francs. Analysts expected 1.45 billion francs. The company said it's 'confident to be able to continue the good performance in the second half of the year'.
Kuehne & Nagel is looking to acquire competing delivery companies as it expands in Europe, chairman Klaus-Michael Kuehne told Die Welt on July19. The company is considering purchases in the UK, France and Italy valued at as much as 600 million francs, Mr Kuehne told the German daily.
'We have maintained the first quarter's strong momentum and achieved convincing growth rates across all business units,' chief executive officer Klaus Herms said in the statement.
The sea-freight unit handled 15 per cent more cargo in the first six months of the year and boosted revenue by 14 per cent to 4.53 billion francs. The division's operating margin, measured as Ebitda (earnings before interest, taxes, depreciation and amortisation) as a proportion of sales was 'stable' at 4.1 per cent.
Kuehne & Nagel arranged 16 per cent more air shipments as first-half sales increased 7 per cent to 1.72 billion francs. The air freight unit's operating margin reached a 'record' 5.7 per cent. Sales in the contract logistics unit surged 22 per cent.
Kuehne & Nagel has said the rail and road logistics division is planning investments through acquisitions in 2007 to expand overland operations in Europe, particularly to gain access to transportation networks in the west and south. The unit boosted first-half sales 18 per cent to 1.38 billion francs.
Kuehne & Nagel aims to grow at twice the market average of about 7.5 per cent to 8 per cent in sea freight and air freight this year.
The company handled about 19 per cent more sea freight and 10 per cent more air freight last year.
Eyeing acquisitions: Kuehne & Nagel is looking to acquire competing delivery companies as it expands in Europe, says its chairman Klaus-Michael Kuehne
Net income rose to 135.1 million Swiss francs (S$169 million), or 1.1 francs a share, from 106.5 million francs, or 90 centimes, a year earlier, the Schindellegi, Switzerland-based company said yesterday in a statement.
Analysts surveyed by Bloomberg News expected profit of 134 million francs. Sales climbed 16 per cent to 5.1 billion francs.
Kuehne & Nagel makes most of its profit-arranging shipment of goods by sea and boosted sales as exports and imports grew.
The International Monetary Fund expects world trade volume to gain 7 per cent this year.
Kuehne & Nagel competes with Panalpina Welttransport Holding Ltd and Deutsche Post AG's DHL division.
The company's sea freight and air freight businesses 'performed very strongly', Axel Funhoff, an analyst at ING Equity Markets in Brussels, said. Air freight volumes in particular were 'surprisingly strong'.
Shares of Kuehne & Nagel fell as much as 3.2 francs, or 2.6 per cent, to 119.6 francs and were down 2.3 per cent at 9.25am in Zurich. The stock has gained 35 per cent this year, valuing the company at 14.4 billion francs.
Gross profit, which the company defines as sales minus taxes, Customs and shipping fees to third parties, increased 17 per cent to 1.49 billion francs. Analysts expected 1.45 billion francs. The company said it's 'confident to be able to continue the good performance in the second half of the year'.
Kuehne & Nagel is looking to acquire competing delivery companies as it expands in Europe, chairman Klaus-Michael Kuehne told Die Welt on July19. The company is considering purchases in the UK, France and Italy valued at as much as 600 million francs, Mr Kuehne told the German daily.
'We have maintained the first quarter's strong momentum and achieved convincing growth rates across all business units,' chief executive officer Klaus Herms said in the statement.
The sea-freight unit handled 15 per cent more cargo in the first six months of the year and boosted revenue by 14 per cent to 4.53 billion francs. The division's operating margin, measured as Ebitda (earnings before interest, taxes, depreciation and amortisation) as a proportion of sales was 'stable' at 4.1 per cent.
Kuehne & Nagel arranged 16 per cent more air shipments as first-half sales increased 7 per cent to 1.72 billion francs. The air freight unit's operating margin reached a 'record' 5.7 per cent. Sales in the contract logistics unit surged 22 per cent.
Kuehne & Nagel has said the rail and road logistics division is planning investments through acquisitions in 2007 to expand overland operations in Europe, particularly to gain access to transportation networks in the west and south. The unit boosted first-half sales 18 per cent to 1.38 billion francs.
Kuehne & Nagel aims to grow at twice the market average of about 7.5 per cent to 8 per cent in sea freight and air freight this year.
The company handled about 19 per cent more sea freight and 10 per cent more air freight last year.