K+N profits fall 20pc, trimmed by legal cost provisioning

SWITZERLAND's Kuehne + Nagel Group has announced that net earnings in 2009 declined 20.2 per cent year on year to CHF467 million (US$429.77 million).

The result includes an extraordinary provision of CHF35 million related to anti-competition investigations that were commenced in 2007. A statement from the group said that Kuehne + Nagel has been subject to investigations by various competition authorities. "Based on the negotiations with the US Department of Justice, Kuehne + Nagel expects that it will be possible to reach a settlement.

"The company has accordingly set aside a provision of CHF35 million to cover all possible costs connected with the case. The provision affects the business field sea freight with CHF10 million and airfreight with CHF 25 million respectively," it said.

In 2009, the group's turnover decreased by 194 per cent year on year to CHF17,406 million, with acquisitions having a positive effect of CHF650 million. The largest turnover decreases were recorded in the Americas (25 per cent), the Asia Pacific region (22.6 per cent) and in Europe (18.5 per cent). Kuehne + Nagel's organisations in the Middle East, Central Asia and Africa experienced the least impact with turnover decreasing 6.1 per cent compared to the previous year.

Last year's consolidated gross profit fell by 6.2 per cent to CHF5,863 million, despite a negative currency effect of 7.5 per cent. The group's operational result (EBITDA) amounted to CHF885 million, down 13.2 per cent compared to 2008.

In the Middle East, central Asia and Africa gross profit decreased 3.8 per cent, in Europe by 4.2 per cent and in Asia Pacific by 11.5 per cent year on year. In the Americas, gross profit decreased 14.6 per cent.

"The good performance of the Kuehne + Nagel Group in the crisis year of 2009 was due to its operational strengths and the timely and consistent execution of its strict cost management and commitment to market share expansion," said company chairman Karl Gernandt.

Said CEO Reinhard Lange: "Our aim for 2010 is profitable growth above market average in all business units. In addition, we will further enhance our product offering, develop new areas of value creation and increase our service quality."

(Source: www.schednet.com)