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K+Nefficiency boost plan fromregional streamlining


Kuehne + Nagel is tomerge its NorthWest Europe, Central Europe and Southwest Europe regions to create a singleWest Europe organisation based in Hamburg. Chairman KarlGernandt said:


“The realignment of the regional structure is part of a comprehensive catalogue of measures to increase efficiency; also the processes of theHuman Resources and Finance functions will be streamlined and optimised.” The group reported a 5.9 per


cent rise in sales to CHF 20,753m for 2012, although operating profitwas down 5.8 per cent to CHF 921m. At the same time it has


announced that Reinhard Lange is to step down as chief executive officer of Kuehne +Nagel for health reasons from7thMay. Amanagement teamled by


chairman KarlGernandtwill take over Lange’s tasks until a replacement is found.The team will consist of business unit heads Hans-Otto Schacht (Seafreight), TimScharwath (Airfreight), Stefan Paul (Road&Rail Logistics) andDrDetlefTrefzger (Contract Logistics). A key prioritywill be the


regional reorganisation. Aswell as theWest Europe consolidation, the regional unitsMiddle East, Central Asia and Africawill be consolidated into a newMiddle East and Africa region. A newNorth Asia groupwill


consist of China,Hong Kong Taiwan andMacau. A newSouth AsiaGroupwill consist of South Asian countries plus South Korea and Japan. The East Europe region based


inVienna remains unchanged, as do theNorth and South America regions. In contract logistics, the group


said that 2012 had been characterised by demand fluctuation, regional variations in warehouse capacity utilisation and significant pressure on prices. Some 30 logistics locations were closed in 2012.Net turnover rose 3.8 per centwhile the operating profit decreased by 6.2 per cent due to one-off start-up and restructuring costs. EBITDA marginwas at 3.5 per cent (2011: 3.9 per cent). In air cargo, Kuehne +Nagel


raised its tonnage by two per cent.While gross profitmargin improved to 20.6 per cent compared to the previous year (19.8 per cent), EBIT-to gross profitmargin at 24.3 per centwas below2011 (29.2 per cent) due to cost increases. EBITDA decreased by 9.1 per cent. In Road & Rail Logistics,


margin pressure and investments in infrastructure negatively affected the operational result of this business unit,which decreased by 14.3 per cent. EBITDAmarginwas at 1.1 per cent (2011: 1.4 per cent). In Seafreight, Kuehne +Nagel


increased volume by 6 per cent, handling some 3.5million TEU.However, the businesswas affected bymargin pressure and cost increases. As a result EBITDA decreased by 5.3 per cent and the EBIT-to-gross profit margin to 30.7 per cent (32.8 per cent in 2011). InMarch 2012, the European


Commission imposed an anti- trust fine of CHF 65m. Kuehne + Nagel is appealing against the decision before the European Court of Justice, arguing that the Commission has not correctly


investigated the facts. 


Kuehne +Nagel’s parts contract


with commercial vehicle manufacturer Iveco has been extended for another three years.


News 07


Frank Appel


DHLlooks for risinggrowth


DeutschePostDHL’s operating profit rosenine per cent to €2.76 billionin2012 onsales up 5.1 per cent to €55.5bn.The group nowexpects that earningswill rise by anannual average of between13 per cent and 15 per cent between2010 and 2015. Operating profit (EBIT) inthe


SupplyChaindivisionrose 14.9 per cent to €416monsales up 8.4 per cent to €14.3bn.The group said that inadditionto positive currency effects,organic growth intheAutomotive and Life Sciences&Healthcare sectors acted as the division’s maingrowth drivers. TheMail divisionsaw


operating profit fall from €1.11bnin2011 to €1.05bnas a result of a one-offVAT payment. The group is focusing on growing the parcels business to offset the decline intraditional mail inGermany. The Express divisionincreased


operating profit by 21 per cent to € 1.11bnonsales up 9.3 per cent to €12.8bn.Double-digit growth inrevenueswas generated inall regions –with the exceptionof Europe,where revenues climbed


Norbert sees transport profits rise


NorbertDentressangle sawoperating profit in its transport business rise by some 28 per cent last year, though its logistics business found themarket tougherwith a three per cent fall in operating profit. Overall, saleswere up 8.5 per cent to


€3.9bn andwhile EBITDAwas down slightly, the group reported a 9.1 per cent rise in EBITA to €142.3m. The group said that improved profitability


in the Transport division wasmostly explained by both the teams’ capacity to adapt and respond to higher volumes of customer service and the excellent performance of pallet distribution activities. Operating profit was up 27.6 per


Supply Chain Standard April 2013


cent to €60.4m. The operating profit generated by Logistics


amounted to €77.9ma fall of 3.2 per cent against 2011.The group said that the operatingmargin stood at 4.4 per cent of turnover, reflecting a good performance despite a high basis of comparisonwith the previous year.TheNetherlands, France, Italy andUK posted the best performance. Freight Forwarding has grown rapidly and


last year produced an operating income of €1mcompared to €300,000 in 2011. HervéMontjotin, chief executive officer,


said: “Despite aworsening and volatile economic environment,we continued to gain market share in our three divisions…Our


financial structure has been further strengthened and our activities have continued to growthrough international expansion. As a result,we can build upon these key success elements to further execute our strategic plan, through both organic growth and targeted acquisitions.” Looking ahead, the group said it did not


anticipate any significant downturn in business, “but, in an unpredictable environment, rigorousmanagement and adaptabilitywill remain key success factors. 2012 has strengthened the group’s financial resources and strategic fundamentals. “As a result,NorbertDentressangle confirms its ambitions for growth in 2013.”


significantly aswell.Revenues and volumes rose particularly strongly inAsia and the Americas region. Operating profit intheGlobal


Forwarding Freight divisionrose from€440mto €512mlast year. While volume and revenues fell inair freight during 2012, sales inoceanfreight and overland transport increased. Thanks to the selective


growth strategy and, in part, to improved buying conditions, grossmargins were increased once again in all three business segments. The group’s consolidatednet


profit climbed by some €500m to €1.66bnin2012.Deutsche PostDHL is looking for an accelerating rate of growth as the year progresses and is projecting anEBIT of €2.7bn– €2.95bnfor 2013. It reckons that earningswill rise by anannual average of between13 per cent and 15 per cent between2010 and 2015. “The past three years have


demonstrated that our Strategy 2015 is paying off,” chief executive FrankAppel said.


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