AI air freight drives Kuehne+Nagel profit increase
Logistics behemoth Kuehne+Nagel reported strong results in the third quarter, powered by hyperscaler demand for air cargo and productivity gains.
Earnings and volume gains, led by AI-related air freight demand and ongoing cost controls, spurred strong third-quarter results for Kuehne+Nagel, beating analysts’ estimates for profit and volumes.
Revenue increased 22% to $8.97 billion and pre-tax earnings were $527 million, up 53% year over year, the Swiss logistics giant reported last week.
The air and ocean forwarding business outperformed by picking up more business from Chinese retail marketplaces and hyperscalers, taking away market share from competitors in the process. Management also said that its cost savings initiative is moving faster than originally anticipated, with annualized savings of $242 million by year’s end. Better productivity has helped turn increased gross profits into operating profit at a rate of 18.2%, up from 13.4% a year ago.
Based on the nine-month results, Kuehne+Nagel (SWX: KNIN) raised its full-year outlook for earnings before interest and taxes to $1.88 billion at the midpoint range.
This story was originally published by FreightWaves. Read the full story at FreightWaves →
Conversation