Kuehne+Nagel Lifts Profit Outlook on Strong Early-Year Performance

K+N lifts profit outlook as cost savings support first-quarter results

First-Quarter Financial Performance and Market Impact

By Anastasiia Kozlova and Danny Callaghan

April 24 (Reuters) - Freight forwarder Kuehne und Nagel lifted the bottom end of its operating profit guidance on Friday after a cost‑cutting drive helped cushion first‑quarter earnings, even as parts of the logistics market remained under pressure.

Updated Profit Guidance and Cost Savings

The Swiss logistics group, which operates in more than 100 countries, forecast recurring earnings before interest and taxes of 1.25 billion to 1.40 billion Swiss francs ($1.59 billion to $1.78 billion) for 2026, up from the previously guided 1.2 billion to 1.4 billion francs.

Cost-Reduction Programme Progress

K+N said its cost-reduction programme was ahead of plan in the first quarter and reiterated that it aimed to realise at least 200 million francs of gross savings by the end of the year.

Market Expectations and Analyst Commentary

The cost cuts supported a 7% beat against market expectations at the recurring EBIT level, Bernstein analysts said in a note to investors.

First-Quarter Operating Profit

The group's recurring operating profit fell 23% to 308 million francs in the first quarter.

Its shares rose around 1% by 0725 GMT.

Middle East Tensions and Sea Logistics Performance

MIDDLE EAST TENSIONS WEIGH ON SEA LOGISTICS

Geopolitical Impact on Logistics Sector

While geopolitical tensions have added strain to Europe's already troubled logistics sector, analysts were expecting the sector's first-quarter profits to get a potential boost from higher freight rates due to the U.S.-Israeli war with Iran.

Sea Logistics Business Results

But K+N said its sea logistics business was negatively affected in the short term by the Middle East disruptions.

"We are closely monitoring the situation, particularly with regard to rising energy prices and the possible impact on consumer demand," CEO Stefan Paul said in a statement.

First-Quarter Sea Logistics Profit

The group said the sea logistics business saw a 46% fall in its first-quarter operating profit to 113 million francs, though it still beat analysts' forecast of 103 million francs.

That drop was also due to a strong year-ago quarter, when companies were front-loading shipments ahead of U.S. President Donald Trump's "Liberation Day" tariff announcements.

Analyst Perspective on Disruption Management

"The company has a solid track record in navigating efficiently through periods (of) disruption," analyst Michael Foeth from Vontobel said in his take on the results.

($1 = 0.7869 Swiss francs)

(Reporting by Anastasiia Kozlova and Danny Callaghan in Gdansk; editing by Milla Nissi-Prussak)