Strong volume growth across all business units boosted integrated logistics services provider Kuehne + Nagel International AG's earnings in 2017.
The company reported earnings of CHF 737 million, or CHF 6.15 per share, for 2017, up from CHF 718 million, or CHF 5.98 per share, in 2016. The S&P Capital IQ consensus GAAP EPS estimate for the year was CHF 6.19.
The company said its earnings were also enhanced by the enactment of the new U.S. tax law.
Earnings before interest and tax, or EBIT, increased 2.1% year over year to CHF 937 million from CHF 918 million, mainly because of a higher contribution from organic business.
Kuehne + Nagel's net turnover increased 12.5% to CHF 18.59 billion in 2017 from CHF 16.53 billion in the previous year because of rate increases in sea and airfreight, and strong volume growth across the company.
Net turnover in the seafreight segment increased to CHF 8.89 billion in 2017 from CHF 7.70 billion in 2016. Volumes rose by 7.5% with particularly strong increases in intra-Asian and U.S. trade lanes, reefer container business and less-than-container load operations. The segment's EBIT decreased to CHF 414 million from CHF 445 million in the prior year.
Airfreight's net turnover increased to CHF 6.94 billion from CHF 5.45 billion and volumes rose by 20.4%. The segment's EBIT increased 5.0% to CHF 313 million from CHF 298 million due to strong volume growth, cost control and higher productivity.
Overland's net turnover edged up to CHF 4.42 billion from CHF 4.08 billion. EBIT increased to CHF 49 million from CHF 28 million as volumes increased in groupage, full truckload and intermodal operations.
