Transport and logistics company, Kuehne + Nagel, has reported profitable growth in the third quarter of 2020.
The company, on a currency-adjusted basis, has significantly improved key operating figures in Q3.
Net turnover for the first nine months amounted to approx. €8.2 billion and EBIT to €737.2 million.
Currency fluctuations were reported to have a significant negative impact on both net turnover (-5.7 per cent) and EBIT (-5.9 per cent) for the first nine months.
Free cash flow increased by 31.4 per cent in the first nine months.
“With our motivated team, we are ready for further growth together with our customers, especially in the pharma & healthcare and e-commerce sectors,” said Kuehne + Nagel CEO, Dr Detlef Trefzger.
“Even though we expect considerable uncertainties in the coming months, we are well prepared,” he said.
The third quarter of 2020, for Road Logistics, was characterised by a significant increase in shipments in the Road Logistics business unit versus the previous quarter.
In particular, demand for domestic transport capacities in European countries reached pre-crisis levels. In North America, demand for all product segments – with the exception of pharma & healthcare and e-commerce – remained significantly below the previous year’s level; however, an initial market revival has been evident since September.
The business unit’s net turnover decreased to approx. €742.8 million in the third quarter and EBIT was down to approx. €11.2 million. The continued very weak demand for expo and event logistics had a significant negative impact on the result.
As for Contract Logistics, market share gains in pharma & healthcare services, e-commerce fulfilment and stringent cost management led to a significant improvement in earnings for the business unit in Q3 2020 compared to the second quarter.
The business unit’s net turnover in the third quarter was approx. €1.1 billion and EBIT was approx. €49.4 million. Adjusted for extraordinary income in the third quarter of 2019 and 2020 from real estate sales of approx. €19.5 million, and approx. €3.7 million respectively, EBIT increased by 44 per cent.
The business unit is continuing to expand its e-commerce fulfilment activities which are driving a significant proportion of new business wins. In Sweden, for example, Kuehne + Nagel will operate a new distribution centre for Amazon.
In other news, Kuehne + Nagel invested in its global vaccine distribution network.