Double-digit express growth drives improvement in Deutsche Post DHL results

Double-digit express growth drives improvement in Deutsche Post DHL results

Deutsche Post DHL saw its revenue climb 4% year-on-year in the third quarter of the year thanks to emerging markets and e-commerce growth. The German postal and logistics giant made EUR 14bn between July and September 2014 thanks to improved volumes and growth in the German parcel business.

Net profit rose more than 17% year-on-year to EUR 468m thanks to lower tax expenses.

The company said growth came in all of its divisions, and confirmed expectations that pre-tax earnings (EBIT) will be between EUR 2.9bn and EUR 3.1bn this year as a whole.

During the quarter, higher costs in the post and e-commerce division were offset by raised postal prices and revenue growth in the parcel business. The DHL divisions saw double-digit earnings growth in the Express and Supply Chain businesses.

In the year to date, Deutsche Post has grown its revenue 2% year-on-year, to EUR 41.3bn, with net profit up 8.5% to EUR 1.4bn.

Investments rose by nearly a quarter in the first nine months, to EUR 494m, as the company worked to expand its parcel infrastructure and the global express network.

Frank Appel, the Deutsche Post DHL chief executive, said the firm was profiting from its competitive position in emerging markets, and its role as an e-commerce enabler.

He said: “Thanks to our continuous investments in the expansion of our network and infrastructure as well as our increased effort to optimize operational processes, we will be able to even more systematically address the needs of our customers and offer our services even more efficiently in the future. We are investing in the Group’s sustainable growth for the years to come and, by taking these steps, we are today setting the course for the success of our Strategy 2020.”

Divisions

Deutsche Post’s Post – e-Commerce – Parcel division saw its revenues up 2.4% in the third quarter, to EUR 3.7bn, as higher postal rates compensated for lower volumes after last year’s national elections. E-commerce parcels saw revenues up by more than EUR 100m in the quarter to EUR 1.4bn, with online shopping now accounting for a third of the division’s total revenue. German parcel volumes were up 8% year-on-year, helping pre-tax earnings in the division up 4% to EUR 288m.

DHL Express saw its revenue up 7.6% in the third quarter, to EUR 3.1bn, with “strong” growth in international time-definite shipping. Modernisation of the air fleet and expansion of the global network helped push up pre-tax earnings by 23% to EUR 305m in the quarter.

DHL Global Forwarding and Freight saw revenue up in the quarter for the first time in nearly two years, with 3% growth to EUR 3.8bn. Revenue growth came from the acquisition of new business in the first half, and resulting volume growth in air and ocean freight. However, pre-tax earnings fell by 43% as the result of investment in IT and process infrastructure.

DHL Supply Chain saw its revenue up 4% compared to last year’s third quarter, to EUR 3.7bn thanks to gains in Asia. Operating earnings were 10% up year-on-year to EUR 110m.

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