Kuehne+Nagel road logistics unit returns to profit in Q3

Kuehne+Nagel said it experienced a “significant increase” in shipments within its road logistics division in the third quarter and demand for domestic transport in European countries reached pre-crisis levels.

Latest results for the group showed net turnover was CHF 5bn (£4.3bn) during the period, a 4% reduction on the same quarter in 2019.

Gross profit was down 5.5% to CHF 1.9bn (£1.6bn).

It said it had demonstrated profitable growth during Q3, following a first half year marked by the coronavirus pandemic.

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Its road logistics unit’s net turnover decreased CHF 66m to CHF 796m (£673.6m), which it blamed on the “very weak demand for expo and event logistics” but increasing demand in other road sectors led to a 1.9% increase in gross profit to CHF 274m (£232m).

Dr Detlef Trefzger, Kuehne+Nagel International CEO, said: “With our motivated team, we are ready for further growth together with our customers, especially in the pharma & healthcare and e-commerce sectors.

“Even though we expect considerable uncertainties in the coming months, we are well prepared.”

The company recently announced it was running eight new Volvo FH LNG tractor units on contracts with Whitbread and Costa, as part of attempts to reduce its emissions.