By Elizaveta Gladun and Anastasiia Kozlova
(Reuters) -Swiss logistics group Kuehne und Nagel reported a 2% increase in its third-quarter operating profit on Wednesday, citing higher profitability per unit in sea logistics.
As one of the biggest global freight forwarders, Kuehne+Nagel has benefited from increased market turmoil amid supply chain disruptions caused by the Red Sea crisis and Russia’s airspace closure after its invasion of Ukraine.
Earnings before interest and taxes rose to 455 million Swiss francs ($525 million) in the third quarter of 2024 from 446 million a year earlier.
Kuehne und Nagel’s improved profitability was due to cost management and the effect of recent restructuring efforts, according to Bernstein analyst Alex Irvine.
In March, the logistics group said it had adjusted its cost base during the fourth quarter of 2023 to cope with tough market conditions, resulting in redundancy costs of 53 million francs that included laying off less than 2% of its workforce.
The group said its sea logistics business recorded a 9% rise in third-quarter core earnings amid supply chain disruption in the Red Sea and the port strike on the US East and Gulf Coasts.
The company’s net turnover for the third quarter was 6.5 billion francs, a 19% increase from the 5.4 billion francs recorded in the same period in 2023.
($1 = 0.8669 Swiss francs)
(Reporting by Elizaveta Gladun and Anastasiia Kozlova, editing by Matt Scuffham)
