Kuehne + Nagel sees profits grow by 14%

International logistics giant Kuehne + Nagel have released a statement that shows the operating profit for its contract logistics operation grew by 14% to CHF114 million (£87.9 million) in the first nine months of 2017.

The Kuehne + Nagel division saw gross profit grow by 7.7%.

The sea freight division saw an EBIT-to-gross profit margin (conversion rate) at 29.2 per cent; EBIT reached CHF 308million (£237m).

The air freight division saw volumes grown by 19% in the period. EBIT for the division increased by 3.2% to CHF 227m.

The overland service saw EBIT increase from CHF 18 million in the previous year’s period to CHF 36 million.

Group turnover was CHF13.5 billion (£10.4bn), while overall EBITA was CHF 840 million.

“With strong volume growth and active cost management we further improved results in the third quarter in line with our expectations,” said Kuehne + Nagel chief executive Detlef Trefzger.“ In seafreight a margin improvement was achieved in the third quarter.

“The airfreight, overland and contract logistics businesses contributed to significant profitability increases. The business development in the first nine months of 2017 confirms our strategic focus on value-creating solutions and makes us confident to reach our profitability targets we have set ourselves for the full business year.”

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