Swiss logistics group Kuehne und Nagel said today that full-year operating profit could be lower than analysts' expectations due to global economic uncertainty.
The freight forwarder also scrapped its 2019-2026 guidance for annual operating profit growth between 17 - 19%, saying it had been 'too optimistic' in its post-Covid market assumptions.
It did not provide new mid-term operating profit targets.
Since the Covid-19 pandemic, shipping and logisitics firms have had to navigate several supply chain crises from backed-up sea ports in the US and China to worker strikes and, more recently, Houthi attacks on vessels in the Suez Canal.
Major shipping companies have for months been forced to go around Africa to evade attacks by Houthi militants, with the Suez Canal crisis showing no sign of resolution.
"The recent escalation in conflict in the Middle East will push out any potential resumption of sailing via the Red Sea and the Suez Canal to beyond this year's peak season," Parash Jain, Global Head of Transport & Logistics research at HSBC, said.
K+N, which operates in more than 100 countries, sees recurring earnings before interest and taxes (EBIT) between 1.50 and 1.75 billion Swiss francs ($1.70-$1.98 billion) for this year.
Analysts had been expecting a median operating profit of 1.69 billion francs for 2025, a company-provided poll showed.
In 2024, EBIT came in at 1.67 billion francs.
K+N said it aims at dividend payout ratio of 80% with investment priority in organic growth and bolt-on acquisitions.
