Kuehne + Nagel Earnings Decline Even as Sea Freight Volume Rises
KuehneÌę+ Nagel Inc. reported third-quarter earnings before interest, taxes, depreciation and amortization fell 3.6% to $273 million, counter to analystsâ average estimate of a 6.4% increase to $267 million.
Freight rates have yet to recover since the global recession almost a decade ago reduced trade, holding back profit at trucking companies and railways and prompting consolidation of shipping companies burdened by debt.
KuehneÌę+ Nagel's U.S. division ranks No. 13 on the Transport Topics Top 50 list of the largest logistics companies in North America.
KuehneÌę+ Nagelâs sea freight unit posted a decline in third-quarter gross profit per container even as cargo volume rose, while tonnage gains at the airfreight division were almost triple the increase of the unitâs earnings per 100 kilograms, the Schindellegi, Switzerland-based company said in a statement Oct. 18.
âThe company should be on track to match broadly our expectationsâ for cargo volume growth, but âthe higher-than-expected margin pressure, especially in the sea freight business, puts the earnings forecast risk to the downside,â Chris Burger, an analyst at Baader Helvea, wrote in a report to clients.
