The Kuehne + Nagel Group leveraged an effective cost-cutting programme and increased sales activities to counteract the severe, recession-related decline in volumes in the transport and logistics business for the first 16.9 percent to US$3.7 billion.
In the global seafreight market, the negative trend from the fourth quarter 2008 continued. While Kuehne + Nagel was affected by this development in the first two months, it was able to gain additional market share in March.
The result was a 13 percent volume drop in the first quarter of 2009, which was less than the market average. Due to strict cost management, the operational result was only 4.7 percent below previous year.
The airfreight business was particularly affected by the recession, with a global market decrease of more than 20 per =cent compared with the previous year's period.
Strict cost control and intensified sales activities mitigated the impact on Kuehne + Nagel's performance. Thus, despite an overall volume decline of 17.9 percent compared to the previous year, substantial new business was generated.
In the first quarter of 2009, demand in European road transport weakened further. For example in Germany, a core groupage market, Kuehne + Nagel experienced a 20 per =cent volume decline in the first two months of the year.
As of January 1, 2009, the French Alloin Group was fully consolidated in the Kuehne + Nagel Group's financials, the 31.4 per =cent increase in gross profit is mainly due to this acquisition.
Improved network capacity utilisation and substantial cost reduction could not compensate for the significant fall in volumes. The operational result was 45.5 percent lower than in the previous year's period.
The global contract logistics market continued to decline and was impacted by strong margin pressure in the first quarter. Kuehne + Nagel compensated for falling customer volumes with new business, and counteracted high fixed costs and insufficient warehouse utilisation through stringent cost management and workforce reductions. |
