Kuehne & Nagel quarterly profit surges 44%
Kuehne & Nagel International AG, the world's biggest sea-freight forwarder, says fourth-quarter profit surged 44 per cent after integrating an acquisition that boosted the Swiss company's warehouse management business.
Mr Kuehne: We expect higher logistics volumes
Net income rose to 144.1 million Swiss francs (S179 million) from 100.4 million francs a year earlier, chief financial officer Gerard Van Kesteren said yesterday.
Sales climbed 24 per cent to 4.91 billion francs after Kuehne & Nagel integrated ACR, a contract-logistics company which was bought at the end of 2005.
Kuehne & Nagel makes most of its profit arranging the shipment of goods by sea, competing with Panalpina Welttransport Holding Ltd and Deutsche Post AG.
Kuehne & Nagel's 440 million euro (S$880 million) purchase of Paris-based ACR expanded its business managing warehousing and distribution services for companies such as Carrefour SA, Europe's biggest retailer.
'We are offering a different product to our customers than just moving a box from A to B, and that has a higher margin,' Mr Van Kesteren said in an interview.
The dividend will be raised to 1.50 francs a share from 1.10 paid a year ago, the Schindellegi, Switzerland-based company said.
'Ongoing favourable economic development in virtually all regions of the world continues to provide Kuehne & Nagel with considerable growth opportunities,' chairman Klaus-Michael Kuehne said in a statement.
'We therefore anticipate a further increase in logistics volumes and to continue our positive performance.'
Shipping company sales are rising amid global trade expansion that the International Monetary Fund estimates will reach 5 per cent this year, putting the world economy on its fastest five-year growth streak in three decades.
The company aims to grow at twice the market average in sea- and air-freight business this year, after handling 19 per cent more sea freight and 10 per cent more air freight last year.
'Considerable investments' through acquisitions are planned in 2007 to expand overland operations in Europe, Kuehne & Nagel said.
Full-year net income jumped 45 per cent to 458 million Swiss francs, or 3.88 francs a share, beating the 441.2 million franc average of 10 analysts' estimates compiled by Bloomberg News. Sales climbed 30 per cent to 18.2 billion francs.
Mr Kuehne: We expect higher logistics volumes
Net income rose to 144.1 million Swiss francs (S179 million) from 100.4 million francs a year earlier, chief financial officer Gerard Van Kesteren said yesterday.
Sales climbed 24 per cent to 4.91 billion francs after Kuehne & Nagel integrated ACR, a contract-logistics company which was bought at the end of 2005.
Kuehne & Nagel makes most of its profit arranging the shipment of goods by sea, competing with Panalpina Welttransport Holding Ltd and Deutsche Post AG.
Kuehne & Nagel's 440 million euro (S$880 million) purchase of Paris-based ACR expanded its business managing warehousing and distribution services for companies such as Carrefour SA, Europe's biggest retailer.
'We are offering a different product to our customers than just moving a box from A to B, and that has a higher margin,' Mr Van Kesteren said in an interview.
The dividend will be raised to 1.50 francs a share from 1.10 paid a year ago, the Schindellegi, Switzerland-based company said.
'Ongoing favourable economic development in virtually all regions of the world continues to provide Kuehne & Nagel with considerable growth opportunities,' chairman Klaus-Michael Kuehne said in a statement.
'We therefore anticipate a further increase in logistics volumes and to continue our positive performance.'
Shipping company sales are rising amid global trade expansion that the International Monetary Fund estimates will reach 5 per cent this year, putting the world economy on its fastest five-year growth streak in three decades.
The company aims to grow at twice the market average in sea- and air-freight business this year, after handling 19 per cent more sea freight and 10 per cent more air freight last year.
'Considerable investments' through acquisitions are planned in 2007 to expand overland operations in Europe, Kuehne & Nagel said.
Full-year net income jumped 45 per cent to 458 million Swiss francs, or 3.88 francs a share, beating the 441.2 million franc average of 10 analysts' estimates compiled by Bloomberg News. Sales climbed 30 per cent to 18.2 billion francs.
