Shares of Kuehne + Nagel International took a hit after the Swiss logistics company released its fourth-quarter financials that fell short of consensus expectations.
Financial Overview:
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Share Performance:
- Shares dropped 11% to CHF266 at 0844 GMT, completely erasing earlier gains.
- Overall, a loss of 8.3% has been recorded since the start of 2024.
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Profit Decline:
- After-tax profit for the final quarter of 2023 was reported at CHF283 million, a significant decrease from CHF494 million in the same period the prior year.
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- Turnover saw a 35% decrease to CHF5.69 billion, with a notable 54% decline in sea logistics and double-digit drops across all other segments.
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- Earnings before interest and taxes (EBIT) halved to CHF322 million, inclusive of redundancy costs totaling CHF53 million.
Analyst Expectations:
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Expected Figures:
- Analysts anticipated a fourth-quarter EBIT of CHF426 million and turnover of CHF5.86 billion.
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Market Response:
- Citi analysts pointed to pricing pressures in the sea segment as the driver behind the earnings miss, suggesting that consensus estimates for 2024 may need to be revised downward.
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Initial Projections:
- Prior to the results announcement, the anticipated EBIT for 2024 was set at CHF1.79 billion based on analyst consensus.
This unexpected downturn raises concerns about the future performance and strategic direction for Kuehne + Nagel International going forward.