Kuehne + Nagel International AG - Company Strategy & Performance Analysis
Kuehne + Nagel International AG (K+N) is a major supply chain solution provider. The company’s core business is the provision of end-to-end logistics solutions, such as sea freight, air freight, rail, road contract logistics and integrated logistics. The company also focuses on providing IT-based logistics solutions.
Major industries served by the company include aerospace, automotive, high-tech, retail, fast-moving consumer goods, pharma and healthcare, industrial, and oil and gas. It also acts as a strategic solutions firm, providing emergency and relief logistics, fairs and exhibitions, and hotel logistics. The company operates in more than 100 countries across the world. Kuehne + Nagel is headquartered in Schindellegi, Switzerland.
MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading transport and logistics companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including air freight revenue, sea freight revenue, air freight volume, sea freight volume, operating income, net income, Total revenue.
K+N’s continued focus on the provision of end-to-end solutions led to an increase in segmental revenue
The contract logistics segment is primarily concerned with providing end-to-end logistics solutions. Contract logistics segment revenue increased by 1.1% from US$4,654.1m in 2015 to US$4.704.9m in 2016. The segment revenue growth is primarily attributed to the company focusing on the provision of specialized end-to-end logistics solutions for industries such as automotive, e-commerce, high-tech, consumer goods and pharmaceuticals.
The expansion of the company’s European operations led to overland segment revenue growth
The company’s overland segment provides land transportation and intermodal transportation services. Overland segment revenue increased at rate of 5.8%, from US$3,914.2m in 2015 to US$4,140.9m in 2016. The increase in segmental revenue was primarily due to the company’s service expansion within the European region.
Volatile international market led to a decline in air freight revenue
The company’s air freight segment consists of industry specific air freight carriage services, such as KN EngineChain. The slow down in demand for air freight led to a decline in the company’s air freight segment revenue over the last three quarters of 2016. It declined at a rate of 4.6%, from US$5,790.8m in 2015 to US$5,525.6m in 2016.
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