K + N reports strong first quarter
Kuehne + Nagel has announced an impressive first quarter in regard to its airfreight volumes. Instead of a projected growth of 6 percent to 7 percent, volumes were up 21 percent in the first quarter of 2011.
Moreover, group operating profit (EBITDA) rose 9.2 percent since 2010, reaching CHF249 million. Sales also experienced growth, increasing by 4.7 percent to CHF4.8 billion.
K+N International CEO Reinhard Lange believes this growth speaks volumes about his company. “The good results in the first quarter underline the value of our global logistics capabilities, flexibility and operational efficiency in a market influenced by different economic conditions, political unrest and natural disasters,” Lange said in a statement. “As planned, we expanded our activities in all business units while at the same time increasing productivity.
According to K+N, the company profited in all regions from its investment in sales and industry-specific services, such as its specialized network for perishables. K+N also reported exponential growth in global exports for the auto sector.
Finally, EBITDA-to gross profit margin rose by 3.6 percent in the first quarter of 2011. K+N executives attribute this to the company’s high growth volume and increased efficiency.
In other news, Metso Minerals (Tianjin) International Trade Co. Ltd., a global construction supplier, has signed a new contract with K+N in China to extend their five-year partnership. The contract details the preparation, execution and administration of a new distribution facility in Shanghai.
Li JingYuan, DC manager of Metso Minerals, believes the partership extension will benefit both parties. “Metso’s goal is to improve customer satisfaction, operational excellence and speed by improving parts availability and delivery reliability. Kuehne + Nagel has demonstrated its capabilities by continuously increasing our inventory visibly and reducing lead times,” Li said in a statement.