Logistics giant Kuehne & Nagel (K&N) claims there are "no indications" that the world economy will recover quickly and expects "further volume reductions" in all of its business units.
Turnover at the company rose 3% to 21.59bn Swiss Francs (CHF) (£13.08bn) in 2008, up from CHF20.97bn (£12.71bn) in 2007. Gross profit increased 4% to CHF6.23bn (£3.78bn) last year, up from CHF6.01bn
(£6.64bn) in 2007.
However gross profit at the group fell 4% to CHF1.52bn (£921m) in the fourth quarter, reflecting the economic downturn. To cope with the changing economic conditions, the company has put in place a salary freeze for staff and may consider global job cuts relating to the falling volumes.
However it has not ruled out acquisitions if the fit is appropriate. Tim Scharwath, chief executive K&N northwest Europe, says: "Our strategy for 2009 is to expand our market share, invest in sales and carry out stringent cost management."
K&N has recently won new contracts with Airbus as well as Hilton and Marriott hotels.
The company says a key strategy for the coming year is to persuade existing customers to use more of its services across its sea freight, air freight, road and rail logistics and contract logistics divisions.
K&N is also looking to hire additional 400 sales people globally in 2009 in an attempt to increase its market
share.
Reed Business Information Limited.©2009
