ANNUAL REPORT 2010 - Kuehne + Nagel

LCL (Less than Container Load) business
LCL is an important segment of the seafreight business unit.
Factors for success are the company’s own network and its multicountry
consolidation services. At central gateways in Asia, the
Middle East and Europe consignments are grouped, sorted
according to destination ports, consolidated in containers and
shipped. New routes were established in all regions in 2010,
transport volume increased by 20 per cent compared with the
preceding year.
Niche products
To meet customers’ manifold needs, for a number of years,
Kuehne + Nagel has specialised in various niche products, which
have reached a high market acceptance.
In the worldwide shipment of forestry products (paper, cellulose
and timber) Kuehne + Nagel achieved growth rates exceeding
the market average.
In reefer container traffic, the Group’s concentration on specific
goods and regions contributed to very satisfactory growth. In
drinks logistics, a segment in which Kuehne + Nagel has been
engaged for eight years now, growth exceeded expectations
despite changes in consumer behaviour.
Emergency and relief logistics
With its special know-how Kuehne + Nagel supports well-known
international aid organisations in crisis areas through long-term
Performance Seafreight
Reports of the Business Units _ _ _ _ _ _ Seafreight
contracts. Private companies also benefit from Kuehne + Nagel’s
expertise in emergency and relief logistics. In addition to its
activities in a number of African countries, Kuehne + Nagel
played a major role in relief operations following the earthquakes
in Haiti and Chile at the beginning of 2010.
Oil & gas, project services
Although companies in the oil and gas industry were still hesitant
to invest, in 2010, Kuehne + Nagel strengthened its activities
in all major markets, generating an improved result in this
segment. The project business saw continued favourable development
with large new contracts in North Africa and North
America.
River shipping
River shipping, a safe, economical and environmentally-friendly
transport mode, is experiencing a renaissance. In 2010, demand
for Kuehne + Nagel’s services in this sector increased substantially,
requiring the charter of additional transport capacity.
Outlook for 2011
In the current business year, the international container market
volume is expected to grow between 6 and 8 per cent. Kuehne +
Nagel aims to achieve profitable growth that substantially
exceeds that of the market. In accordance with the Group’s
growth strategy, efforts will be concentrated on the continuous
expansion of its sophisticated service offerings in niche areas
and a strengthening of activities in intra-Asian trades activities.
CHF million 2010 Margin 2009 Margin Variance
per cent per cent 2010/2009
per cent
Turnover 8,996 7,572 18.8
Gross profit 1,224 13.6 1,202 15.9 1.8
EBITDA* 441 4.9 376 5.0 17.3
EBIT* 416 4.6 339 4.5 22.7
Number of operational staff 7,588 7,421 2.3
TEU '000 2,945 2,546 15.7
* Includes provision for competition investigations including associated legal expenses of CHF 1 million (2009: CHF 10 million)
(see notes 23, 40 and 44 of Consolidated Financial Statements for details).
27