Losses at US subsidiary wipe out K'N profits.

(From Lloyds List)

Byline: Swiss-based giant writes off extraordinary goodwill totalling $151m, writes Katrin Berkenkopf in Cologne

BAD business, in particular at its US subsidiary USCO Logistics, has prompted K'hne ' Nagel to write off extraordinary goodwill in its 2002 accounts, totalling SFr206m ($151m).

The move completely swallowed up net profits, which had been expected to exceed SFr150m.

Klaus-Michael K'hne, chairman of the Swiss-based logistics giant, said the measure had been decided at short notice last week after the company agreed it was best to write down goodwill at a time when the group was in a good financial state.

In 2001, net profits had reached SFr160m. Nevertheless, the group decided to pay out an increased dividend of SFr3 per share, up from SFr2.90 in the previous year.

Contract logistics specialist USCO, which had been acquired by K'hne ' Nagel in 2001, was expected to return to the black this year, chief executive Klaus Herms said. Last autumn, the group had already warned that North America was the only region not to report good operating results.