ANNUAL REPORT 2011 - Kuehne + Nagel

In airfreight, the tonnage increase of 13 per cent exceeded
expectations, particularly in view of the continuous decline in
market demand during the course of the year. The outstanding
performance is based on the targeted expansion – accelerated
by acquisitions – of perishables logistics activities, and the successful
provision of industry-specific airfreight solutions. Despite
substantial investments the EBITDA to gross profit margin
improved to 31.7 per cent. Cost efficiency and productivity
increases contributed to the remarkable result.
Groupage activities were boosted by the acquisition of RH Freight
leading to an above market volume growth of 10 per cent.
Volumes in the full and part load and industry-specific distribution
segments developed favourably, too.
Improvements in efficiency are expected from the further
increase in the density of the overland network in 2012, the
start-up of the Eurohub in Bad Hersfeld and the further standardisation
of IT systems.
The contract logistics business unit had to cope with special
challenges in 2011. The currency-adjusted increase in net turnover
of 7.8 per cent (market growth: 3 per cent) and the doubledigit
expansion of order volume did not compensate for the
Report of the Managament Board
pressure on margins. In particular, the operational result was
adversely affected by the costs of restructuring measures taken
in North America and France. In future, the focus will be placed
on the improvement of profitability by selective growth. Of key
importance is the pursuit of the campus strategy, which increases
efficiency and generates synergies by concentrating different
facilities in a central location.
Development of business in the regions
The Asia-Pacific region achieved good business results in 2011.
Particularly in seafreight, increased volumes were achieved.
In order to meet the strong demand for logistics services in the
Chinese domestic market, Kuehne + Nagel commenced the
establishment of overland operations and expanded its contract
logistics portfolio.
Despite the debt crisis and divergent economic environments,
Kuehne + Nagel performed well in the Europe region. Germany
recorded an outstanding development of turnover and earnings.
The results of the national companies in Italy, Spain and Portugal
were satisfactory despite the difficult economic environment.
In France the economic slowdown clearly impacted the
result of the national company. Here, an extensive structural
reorganisation was initiated in the contract logistics business
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