LOGISTICS giant Kuehne+Nagel has highlighted “market share gains” as evidence of success in beating off the worst effects of global pandemic.
The company, which reports its financial results in Swiss Francs, did concede some pain, however, with its half year results for 2020 showing net turnover down 5.9% and sea container volumes down 11.7%.
CEO Dr Detlef Trefzger said the crisis triggered by the coronavirus pandemic “had profound and sudden negative impacts on international trade”.
“We took the right measures early on and successfully managed Kuehne+Nagel under these difficult conditions,” Dr Trefzger said.
“We expect the second half of the year to continue to be marked by major uncertainties, for which Kuehne+Nagel is well prepared.”
Chairman Dr Joerg Wolle said their strategic course was “having a positive effect in the midst of the coronavirus crisis”.
“The company has been consistently digitalised and thus remained fully operational throughout the crisis,” Dr Wolle said.
“The successful performance in the second quarter is owed to the good market position of Kuehne+Nagel and the recovery of the Asian markets,” he said.
“The good work during these past months underlines today’s high level of resilience of Kuehne+Nagel.”
In sea logistics, the company reported being “able to gain market share in select, high-yielding industries including pharma, reefer transport and e-commerce”.
“The good volume development in these areas and the cost management did not fully compensate the significant decline in the high-yielding SME customer portfolio,” the company statement read.
“In the second quarter of 2020, container volume declined by 11.7% year-on-year to 1.1 million TEU.
“Sea Logistics net turnover fell to almost CHF 1.7bn (AU$2.6bn) and EBIT to CHF 88 million.”
Customer interest in CO2-neutral sea freight solutions was said to have remained high “despite the volatile market environment”.
In aviation, the company reported “a high demand” for crisis goods in the second quarter leading to a short-term, beneficial shift in the product mix.
The air logistics business unit purchased charter capacity for customers “on a targeted basis” as belly capacity on passenger flights was unavailable during the second quarter of 2020.
“These factors, combined with active cost management, produced attractive profitability along with expanded market share,” the company stated.
“With the gradual resumption of passenger services since June, a slight normalisation of the general market conditions is visible.”
At 315,000 tonnes, air freight volume in the second quarter of 2020 was 22% below the same period of the previous year.
Progress was reported in the automation of processes, especially in the implementation of AirLOG, Kuehne+Nagel’s proprietary transport management solution.
Meanwhile the board has proposed a dividend of CHF 4.00 a share to shareholders at an extraordinary general meeting on September 2.
“In view of the good results, the strong resilience of the company, the stable cash flow and the available liquidity, we have decided to propose to the shareholders an appropriate participation in the company’s success in 2019 with a dividend of CHF 4.00 per share,” said Dr Wolle said.
