Kühne+Nagel Continues Its Surge in the Third Quarter of 2021

The Kühne+Nagel Group also recorded an excellent business development in the third quarter of 2021. All business areas were able to significantly exceed their previous year’s results. The group’s net revenue in the first nine months of 2021 was CHF 21.8 billion, almost 50% above the previous year’s period, and EBIT more than doubled to over CHF 1.8 billion.

(Schindellegi) Dr. Detlef Trefzger, CEO of Kühne + Nagel International AG, says: “In the current situation with hard-to-plan supply chains, our Kühne+Nagel experts are working tirelessly to realize the best possible logistics solutions for our customers. We are on track and were able to achieve an excellent business result in the third quarter as well. We do not expect any significant changes in the tense market situation in the coming months.”

Sea Freight

The challenging conditions with congested ports and disrupted supply chains required a particularly high level of support in sea freight in the third quarter of 2021, resulting in lower productivity. The business area focused on transporting goods with complex requirements.

The container volume in the first nine months of 2021 was slightly above the previous year’s period at 3.4 million TEU. The net revenue of the business area was CHF 9.1 billion, and EBIT was CHF 991 million. The conversion rate reached 52.5%.

Kühne+Nagel’s sea freight will realize the offshore logistics for Siemens Energy’s prestigious Chilean project “Haru Oni.” This is the world’s first commercial hydrogen production facility for synthetic fuels.

Air Freight

With strong volume growth, air freight once again recorded market share gains in the third quarter of 2021. Globally limited freight capacities required tailored customer solutions. Services for pharmaceuticals and system-relevant goods, as well as e-commerce, were in high demand.

The air freight volume in the first nine months of 2021 was approximately 50% above the previous year’s period at 1.6 million tons, of which about 20% was due to the acquisition of the Chinese air freight company Apex. Net revenue amounted to CHF 6.6 billion, and EBIT was CHF 645 million. The conversion rate remained high at 41.2%.

The global network for time-critical pharmaceutical shipments, QuickSTAT, was expanded with a new control center in Singapore.

Land Transport

Land transport was able to significantly increase shipment numbers again in the third quarter of 2021. Particularly in Europe, the networks were very well utilized; strong demand was also recorded in North America. The global digital solution for customs clearance was especially in demand as a specialized service.

The net revenue of the business area was CHF 2.7 billion in the first nine months of 2021, and EBIT nearly doubled to CHF 75 million compared to the previous year.

Once again, the digital booking platform for land transport, eTrucknow, recorded strong growth. The service, which was primarily focused on Asia, is currently being rolled out globally and is already available in over 20 countries.

Contract Logistics

In the third quarter of 2021, contract logistics, particularly in North America, showed very high utilization. High order intake was once again recorded in the areas of e-commerce fulfillment and pharmaceuticals.

Due to activities sold off in the UK at the beginning of 2021, net revenue was slightly below the previous year’s period at CHF 3.4 billion in the first nine months of 2021. EBIT improved to CHF 114 million.

In the third quarter of 2021, contract logistics was able to gain additional customers for vaccine storage. An existing distribution center for cold logistics is currently being expanded in Belgium to a total of 25,000 m2.

Downloads:

Quarterly Report Q3/21:                    https://bit.ly/3pjs2tz

Analyst Presentation Q3/21:       https://bit.ly/3B9LifD

Photo: © Kühne+Nagel