Profits for Kuehne + Nagel dipped 2.4 per cent in the first quarter of 2017 despite revenue increasing by 7.2 per cent.
The company made a profit of 165 million Swiss francs ($165.4 million) in 2017 compared to CHF169 million during the same period of 2016.
Net turnover was up from CHF4 billion in the first quarter of 2016 to CHF4.3 billion in 2017.
Kuehne + Nagel chief executive officer, Dr Detlef Trefzger says: “The good result in the first quarter 2017 supports our optimistic outlook for a continued successful business development this year. In seafreight and airfreight we are experiencing strong growth and have gained significant market shares.”
“This increase in volume and productivity as well as cost control mitigated the ongoing pressure on margins. Our strategic approach for overland and contract logistics led to a further improvement of results. We have established a good basis for the second half of 2017.”
Airfreight turnover was CHF1.3 billion in the 2017 compared to CHF1.3 billion in 2016, and segment profit measured as earnings before interest and tax was slightly down to CHF72 million compared to CHF73 million in 2016.
Kuehne + Nagel airfreight volumes increased 15.5 per cent to 350,000 tonnes with strong growth from sectors including pharma, perishables and e-commerce.