K+N takes advantage in 2020
As he presented Kuehne + Nagel's annual results for 2020 at a virtual press conference recently, CEO Detlef Trefzger spoke of a year characterised by "organic and inorganic growth, especially towards Asia.” The takeover of Apex International marks the end of a two-year-process of negotiations, which will considerably enlarge K+N's footprint in this continent.
In total, the group's turnover amounted to CHF 20.4 billion, 3.5% down from 2019, although ebit was 1% higher at CHF 1.1 billion. Currency fluctuations with regards to the strong CHF had a significant negative effect of -6% on both net turnover and ebit. Free cash flow went up by 27.7%, "of which we are particularly proud", as CFO Markus Blanka-Graff pointed out.
In sea freight, container volume handled by K+N in 2020 was 4.5 million teu (-6%), with the unit generating a "very satisfactory" net turnover of CHF 7.1 billion and an ebit of CHF 423 million. One-off effects had an impact on the results.
Air Logistics has proven to be the preferred transport solution in dealing with the Covid-19 crisis. The high demand for K + N’s expertise in pharma and essential goods produced excellent results. Of all business units, air freight was most in demand.
Overall, 2020 air freight volumes were at 1.4 million t (12.8% below the previous year) and in the fourth quarter alone 392,000 t or 7.5% below the same period last year. Nevertheless, net turnover for the business unit improved by 11.6% to CHF 5.2 billion and ebit by a significant 53.5% to CHF 505 million.
Road logistics, on the other hand, was badly hit, with a 10.1% drop in turnover (CHF 3.2 billion) and a 20.5% decrease in ebit (CHF 62 million).Contract logistics’ net turnover reached CHF 4.9 billion (-9.7%) and an ebit of CHF 80 million (-7.6%).
Trefzger sees "good prospects due to the fact that 60% of all newly won projects relate to e-commerce fulfilment or healthcare". He added that the group expects "similar eventful times in 2021" due to the pandemic, though less volatile than last year.
Furthermore, Tobias B. Staehelin will be proposed for election to the board of directors of Kuehne + Nagel International. Staehelin, born in 1978, is currently CEO of C. Haushahn in Stuttgart and member of the management board of Schindler Deutschland. He will join Schindler’s group executive committee as head group human resources on 1 April 2021. (cd)