Kuehne + Nagel to Buy Asia Pacific Logistics Provider City Zone Express
By Dominic Chopping
Kuehne + Nagel has agreed to buy cross-border logistics provider City Zone Express as it looks to strengthen its offering in Asia Pacific to cater to booming e-commerce and high-tech industries in the region.
Financial terms weren't disclosed, but the acquisition will be immediately earnings-accretive and strategically enhance Kuehne + Nagel's cross-border road logistics service offerings in Asia, it said.
Malaysia-based City Zone Express is a subsidiary of Singapore-listed Chasen Holdings and operates in Malaysia, Singapore, Vietnam, Thailand, and China.
The Swiss logistics company also announced earnings Friday, reporting a net profit of 283 million Swiss francs ($320 million) in the final quarter of 2023, down from CHF494 million in the same period a year earlier as turnover fell 35% to CHF5.69 billion.
For the full-year, net profit rose to CHF1.46 billion on turnover of CHF23.85 billion, in line with a company-compiled consensus for CHF1.46 billion and CHF24.02 billion, respectively.
"Kuehne + Nagel closed the financial year 2023 with an overall good performance in a persistently challenging environment," said Chief Exexcutive Stefan Paul. "We adjusted our cost base to market conditions by intensifying restructuring measures in the fourth quarter."
It will pay a dividend of CHF10, down from the CHF14 payout for 2022.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
March 01, 2024 01:40 ET (06:40 GMT)
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