Logistics group, Kuehne + Nagel, saw first quarter operating profits drop 45 per cent but still managed to exceed forecasts.
The company’s earnings before interest and tax fell to 612 million Swiss francs in the first quarter of 2023, from 1.12 billion francs a year earlier.
Signs of significant weakening emerged late last year following a period of high pandemic-related demand for logistic services. With falling demand, soaring inflation and high inventories, freight rates have been dragged down.
Kuehne + Nagel CEO, Stefan Paul, said he is not dismayed but the results, which were expected because of signs of significant weakening.
“The corona-related special economic situation distorts the comparison with the previous year,” he said. “In the context of a normalised business environment and compared to the business performance before the pandemic, the first quarter of 2023 represent a record result.”
The company’s road logistics division saw first quarter net turnover of 956 million Swiss francs and reported approximately six million orders processed. In March, Kuehne + Nagel, which operates in more than 100 countries, put 23 electric trucks into operation in France.
In other news, Kuehne + Nagel has invested in a facility near Dallas/Fort Worth International Airport to bolster its healthcare fulfilment capabilities.