P RESULTS
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Kuehne + Nagel UK takes a dip in turnover and profit
By Simon Jack TOUGH TRADING conditions caused a drop in both turnover and pre-tax profit at Kuehne + Nagel's UK division in the year ended 31 December 2009.
The company's results,p ublished this month at Companies House, recorded a decline in turnover from £1.02bn in 2008 to £833m in 2009, while pre-tax profit fell back from £28.5m to £14.9m.
In its directors' report. the firm says it will continue with a series of austerity measures to safeguard profitability: "The company will focus on a dual strategy of cost control and increased sales activity."
Turnover in the international freight forwarding arm fell from £633m to £468m. but the contract logistics arm fared slightly better with turnover dropping marginally from £383m to £365m. During 2009, a contract with Whitbread was integrated into Kuehne + Nagel's foodservice division and is operated from a new 500,000ft2 distribution centre. Further new business, including a contract with Virgin, has been consolidated into the facility.
The company predicts another tough year in 2010. with greater competition for available work.
It says: "This could lead to reductions in volumes, which could further lead to pressures on company profitability. We are working hard to minimise these effects."
• The Kuehne + Nagel Group recorded an increase in turnover from Swiss Francs (CHF) 12.8bn (£8.361m) to CHF 15.2hn (£9.91bn) in the first nine months of 2010, compared with the equivalent period in 2009. Earnings-beforetax rose from to CHF 499m (£326m) to CHF 572m (£373m).