K+N H1 sea logistics revenue down 17%, air logistics revenue drops 4%

Kuehne+Nagel reported earnings of CHF 576 million in the first half of 2024, down 33 percent and net turnover of CHF 11.6 billion, down nine percent.

“The result was impacted by negative exchange rate effects of two percent in the first half of 2024 and non-recurring restructuring costs of CHF 17 million in the second quarter of 2024,” says an official release.

Kuehne+Nagel reported a 25 percent decline in earnings at CHF 298 million for the second quarter of 2024 compared to CHF 398 million in Q22023. Turnover increased marginally (one percent) to CHF 6 billion from CHF 5.9 billion in the second quarter of 2023, the release added.

Stefan Paul, CEO, Kuehne+Nagel says: “In the first half of 2024, we continued to focus consistently on the initiatives of our strategic Roadmap 2026. The recovery in demand for air freight had a positive impact while the renewed disruptions in the Red Sea created additional complexity in supply chains worldwide. We are well positioned for anticipated higher demand in the second half of the year and we expect to realise further efficiency gains.”

Air logistics
Net turnover in the air logistics business unit amounted to CHF 3.4 billion with EBIT of CHF 210 million in the first half of 2024, down four percent and 28 percent, respectively, the release added.

Turnover was up nine percent at CHF 1.9 billion in the second quarter with an EBIT decline of 17 percent at CHF 116 million.

"The unit handled more than one million tonnes of air freight in the first six months of 2024, five percent more year-on-year. Volume growth developed in line with the addressable market and focused on profitable segments such as healthcare and semicon. The conversion rate was 26 percent.

"Demand for combined sea-air logistics services recorded strong growth in the first half of 2024 as some customers sought to shorten transit times due to the situation in the Red Sea."

Sea logistics
Net turnover in the sea logistics unit amounted to CHF 4.1 billion and EBIT was CHF 397 million in the first half of 2024, down 17 percent and down 38 percent, respectively.

"The container volume at the end of June 2024 was 2.1 million standard containers. As part of Roadmap 2026, 34 new customer care locations have been opened to date, increasing the support of SMEs.

"Kuehne+Nagel is implementing sustainable solutions for a growing number of customers. For example, the business unit sea logistics recently started using biofuel for the transport of relief goods on behalf of the Dutch IDA Foundation. This results in a CO2e emissions reduction of around 85 percent compared to the use of fossil fuels."

Road logistics and contract logistics reported a six percent decline in revenue at CHF 1.8 billion and CHF 2.3 billion, respectively.

"Kuehne+Nagel performed well in the first half of 2024," says Joerg Wolle, Chairman, Board of Directors, Kuehne+Nagel. "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."

With over 80,000 employees at almost 1,300 sites in close to 100 countries, Kuehne+Nagel is the logistics partner of choice for 400,000 customers worldwide, the release added.