The Kuehne+Nagel Group reported strong third-quarter performance and marked the company's "best ever" nine months on the back of increased pressures in the supply chain.
Kuehne+Nagel said in the third quarter of 2022, the Group continued to "perform well" in the market. It added that from January to September 2022, net turnover increased by 40% to CHF 30.6 billion, EBIT by 71% to CHF 3.1 billion and net earnings by 73% to CHF 2.3 billion.
"Kuehne+Nagel posted its best-ever nine-months results. However, higher energy prices, broad-based inflation as well as geopolitical tensions drive additional volatility in supply chains. At the same time, the easing in the sea and air freight markets translates to some relief for our customers," said Stefan Paul, CEO of Kuehne+Nagel International AG.
Net turnover in Kuehne+Nagel's Sea Logistics business amounted to CHF 14.8 billion and EBIT was CHF 1.7 billion for the period January to September 2022. Container volumes were 3.3 million TEU through the end of September 2022.
"Overall, complexity in global sea freight markets steadily decreased in the first nine months of 2022, while volatility steadily increased in major trade routes," Kuehne+Nagel said in a statement.
Heightened volatility, increased demand
Net turnover in the business unit Air Logistics amounted to CHF 9.1 billion and EBIT was CHF 1.1 billion for the period January to September 2022 and air freight volumes reached 1.7 million tons through the end of September 2022.
The Swiss-based global transport and logistics company noted that commercial airline operations were volatile in the first nine months of 2022 due to the overall geopolitical situation and level of uncertainty but demand for cargo capacity on most trade routes was positive.
Meanwhile, net turnover in the business unit Road Logistics amounted to CHF 3.0 billion and EBIT was CHF 120 million for the period from January to September 2022. Kuehne+Nagel said high utilisation of networks in all regions once again delivered significant revenue growth.
"Overall, the result in the third quarter of 2022 was very strong," Kuehne+Nagel added.
It added that by installing photovoltaic systems on truck roofs in the long-haul segment, Kuehne+Nagel is also setting a further example of reducing CO2 emissions in Road Logistics. In addition, the first 25 electric trucks were procured for short-haul distribution in France.
Net turnover in the business unit Contract Logistics amounted to CHF 3.6 billion while EBIT totalled CHF 139 million for the period January to September 2022.
Kuehne+Nagel said the utilisation of warehouse space worldwide was again "very high" and growth in the third quarter of 2022 was more pronounced year-on-year.
In Contract Logistics, Kuehne+Nagel opened new healthcare distribution centres in Ireland (Dublin) and in the USA (Indianapolis). Both locations are strategically located near their respective international airports.
For the segment, the transport and logistics company said net turnover reached CHF 3.6 billion while EBIT totalled CHF 139 million for the nine-month period.
"Utilisation of warehouse space worldwide was again very high. Growth in the third quarter of 2022 was more pronounced year-on-year," Kuehne+Nagel said, adding that in Contract Logistics, it opened new healthcare distribution centres in Ireland (Dublin) and in the USA (Indianapolis).
Kuehne+Nagel said during the third quarter, it also purchase biofuel linked to the shipment of 50,000 TEU in the third quarter of 2022, providing customers with direct access to CO2e emission-free transport.
