ANNUAL REPORT 2011 - Kuehne + Nagel

In the Asia-Pacific region, Kuehne + Nagel's warehousing and
distribution services were utilised by new customers in the entertainment
electronics and industrial goods segments. Growth
momentum slowed in the Middle East due to the political unrest
in the area, but the highly specialised portfolio of services for
the aerospace industry enabled Kuehne + Nagel to win new
important business.
Lead Logistics: Innovation and increased
efficiency in response to growing pressure on margins
The integrated management and optimisation of transport
chains, warehousing and networks are the core of Kuehne +
Nagel's offering in the field of lead logistics. The positive
demand has continued as a stable trend, but margins have
come under substantial pressure due to stronger competition in
this attractive market segment. In 2011, newly gained businesses
in Asia, Eastern Europe and South America, did not compensate
the pressure on margins.
In 2012, it is aimed to achieve greater efficiency by the development
of innovative services, in particular for inbound logistics,
and by intensified utilisation of the eight Logistics Control Centres.
In these centres, services of a similar kind such as central
customer service, transport planning and reporting are provided
for all lead logistics customers.
Performance Contract Logistics
Report of the Business Units _ _ _ _ _ _ Contract Logistics
Measures to achieve a sustained
improvement in profitability
The pursuit of the campus principle is a key factor for the improvement
of profitability. The concentration of different facilities
and highly qualified experts at a single strategic location enables
Kuehne + Nagel to handle demand peaks in a flexible manner.
In other words, the available resources can be ideally adapted
to customers from different sectors and with different
seasonal demand patterns. Furthermore, the concept optimises
operational processes and creates synergies, also in the field of
distribution, which are to the benefit of all involved parties.
Examples of facilities in line with this concept are those in Duisburg,
Germany and in Milton Keynes, England.
The global implementation of the production system (KNPS) is
aimed to reduce costs and increase productivity.
Outlook for 2012
The year 2012 will be a period of consolidation. In terms of
selective profitable growth, Kuehne + Nagel will focus more
strongly on selected customers, specific countries and industry
segments. A further reduction of unprofitable locations, the efficient
implementation of new business, the high quality of services
and strict cost management will all contribute to increase
the EBITDA margin.
CHF million 2011 Margin 2010 Margin Variances
per cent per cent 2011/2010
per cent
Turnover 4,168 100.0 4,316 100.0 –3.4
Gross profit 2,954 70.9 3,119 72.3 –5.3
EBITDA 161 3.9 188 4.4 –14.4
EBIT 63 1.5 77 1.8 –18.2
Number of operational staff 30,238 29,057 4.1
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