Sea freight handled 1,079 million TEU, up by 50,000 with volume growth only held back by the decline in exports of recycling material to China following changes to import terms. Asian operations saw EBIT grew by 4.3% to CHF 97 million, with EBIT- to-gross-profit ratio (conversion rate) growing at what K+N says is an industry-leading level of 27.2%.
Overland traffic saw net turnover up 16.4% and gross profits up 16.8% driven by US intermodal transport. K+N says contract logistics grew twice as fast as the market. Double-digit increases in China and South-East Asia were crucial as well as significant business wins, in particular in the area of e-commerce fulfilment leading to an 11.3% jump in gross profits. Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, said:
“We have made a successful start into the business year and achieved clear increases in volume across all business units. Building on this growth combined with further productivity improvements we were able to considerably increase our results in the first quarter. At the start of the new year we implemented two new digital platforms globally, SeaExplorer and KN ESP, addressing specific customer requirements and creating significant efficiency gains.
”Another important milestone is the opening of two innovation centres where we develop innovative solutions in contract logistics together with customers. We are determined to continue on this path.”
Full interim financial statements are viewable here.
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