[170719.EN.BIZ] K+N's H1 Air Cargo Volumes Drop 5.8pc Due To Trade Barriers

KUEHNE + NAGEL (K+N) suffered a first half air freight volume decline of 5.8 per cent to 813,000 tonnes. The decrease was attributed to "stagnating markets" in some key industries and an "under pressure" global air cargo market impacted by mounting trade barriers.

The air freight division's first half EBIT fell by 4.4 per cent year on year to CHF174 million (US$176.697 million).

Kuehne + Nagel International chief executive Detlef Trefzger said: "Currently our focus is on addressing the significant changes in air freight market conditions and on continuing our restructuring activities in contract logistics."

Commenting on the results, K+N was cited as saying in a report by London's Air Cargo News: "Growth was achieved with industry solutions for pharma & healthcare, as well as for perishables.

"Quick International Courier, one of the market leaders in time-critical transport and logistics services for the pharma & healthcare and the aviation industries, was integrated successfully. At CHF174 million, EBIT was down by 4.4 per cent compared to the previous year's period."

On a brighter note, sea freight volumes were up 4.5 per cent in the first half of the year to stand at 2.4 million TEU.

The Kuehne + Nagel Group increased net turnover by 5.3 per cent, gross profit by 5.5 per cent and EBIT by two per cent compared to the same period a year earlier.

Mr Trefzger added: "With our initiatives to improve our technological capabilities we will become more cost effective and improve customer service. We are well set to successfully meet the challenges of an ever-demanding market."

Source : HKSG.