Kuehne + Nagel warned it faced significant challenges in the coming months as it reported sharp declines in first quarter profits, volumes and turnover due to the Covid-19 crisis.
Dr Detlef Trefzger, CEO of Kuehne + Nagel International, said the coronavirus pandemic was “an immense global challenge” which had “significantly weakened” industrial production and trade volumes.
Despite K+N describing its first quarter results as “resilient”, all key indicators lurched into the red.
Earnings before interest and tax (EBIT) totalled CHF184 million ($189 million), down 24% from CHF242 million in Q1 2019, net turnover fell 6.2% to CHF4,912 million and earnings per share fell 23.3%.
K+N’s Sea Logistics division suffering the bulk of the losses (see table below) as EBIT dropped from CHF112 million in Q1 2019 to CHF79 million in the first quarter of 2020. K+N blamed the loss on “significant double-digit decline in volume demand to and from China”.