Swiss group Kuehne+Nagel has reported a 23% drop in its second-quarter operating profit, beating expectations, and said it was ready for higher second-half demand after increased use of its Sea-Air Logistics service.
Earnings before interest and taxes (EBIT) fell to CHF 402 million (€415.3 million) in the second quarter from CHF 523 million (€540.3 million) a year earlier.
The result beat the company-provided average consensus forecast of CHF 385 million (€397.8 million), although LSEG's average analyst forecast was CHF 409.6 million (€423.2 million).
"We are well positioned for anticipated higher demand in the second half of the year and we expect to realise further efficiency gains," chief executive officer of Kuehne+Nagel, Stefan Paul, said in a statement.
Quarterly Highlights
The company, which operates in more than 100 countries, did not provide its outlook for the current year, saying only it continued to focus on the initiatives of its Roadmap 2026 in the first half of the year.
The company said the impact from the Red Sea crisis 'was minimal' in the first half. It had earlier expected it to affect its second-quarter EBIT in a low double-digit million francs range.
The transport and logistics operator reported Q2 EBIT in its Air logistics unit of CHF 116 million (€119.9 million) compared to the average forecast of CHF 101 million (€104.4 million) in the company-provided consensus.
First-Half Performance
The company's net turnover declined 9% year on year in the first half of 2024 to CHF 11.6 billion (€12 billion), while EBIT fell by 32% to CHF 778 million (€803.8 million) and earnings dropped 33% to CHF 576 million (€595.1 million).
Dr Joerg Wolle, chair of the board of directors of Kuehne+Nagel International AG, stated, "Kuehne+Nagel performed well in the first half of 2024. The streamlined organisational structure, initiated by the board of directors in April 2024, will lead to a significant increase in efficiency and greater customer proximity.
"This will enable us to be more responsive and faster in the implementation of our strategy and to offer excellent, comprehensive logistics solutions."
News by Reuters, additional reporting by ESM.
