Kuehne + Nagel has reported a ten per cent drop in EBITDA for the first nine months of the year to 694 million CHF (£418 million).
However, the company said it is “reasonably satisfied” with the result. Early and consistent implementation of its dual strategy of strict cost management and commitment to market share expansion helped it deal with the recession.
Gross profit for the period was 7.3 per cent below last year’s figure at 4.4 billion CHF (£2.6 billion).
The contract logistics business’s operational result were 17 per cent below the previous year, while the market continues to stabilise on first half-year level.
Thanks to strict control and new business implementation the third quarter operational results for the division remained nearly level with the second quarter. The EBITDA margin decreased from 5.1 to 4.7 per cent.
However, its road and rail logistics unit saw EBITDA margin go up from one to 1.8 per cent and its operational result increase by 50 per cent compared to the same period the previous year.
In order to strengthen its European market position and optimise operational synergies, K+N’s national and international overland traffic and contract logistics-related distribution activities will be consolidated under the responsibility of management board member Dirk Reich from 1st January 2010.
Management board member Xavier Urbain will be terminating his operational responsibility on 31st December 2009, but will continue to support the company’s growth strategy on a consultancy basis.
Reinhard Lange, chief executive of Kuehne + Nagel International, said: “We are reasonably satisfied with our results for the first nine months.
“Our dual strategy has proven effective – we have successfully counteracted substantial volume declines through strict cost management and increased sales activities.
“As a result, we have continuously expanded our market share and over-proportionately benefited from the third quarter’s business stimulation.”