DHL Logistics EBITA up 36.4 pct Y/Y 2004
Logistics services provider DHL Logistics, a subsidiary of German postal services provider Deutsche Post AG, and its units Danzas Air & Ocean and DHL Solutions saw a 36.4 pct year-on-year rise in earnings before interest, tax and amortisation (EBITA) to 281 mln euro ($363.1 mln) in 2004, Deutsche Post said on April 13, 2005.
DHL Logistics increased its sales revenue by 15.4 pct to some 6.8 bln euro ($8.788 bln). Return on sales (ROS) rose to 4.1 pct from 3.5 pct.
DHL Logistics' results show that it has successfully advanced its growth course and succeeded in convincing many new customers of its global capacity in a highly competitive market, Logistics and Corporate Service board member, Frank Appel, said.
DHL Logistics' goal is to not only become number one in air freight, but also number one in ocean freight and one of the top three players in contract logistics, Appel said.
DHL Danzas Air & Ocean reported a 24 pct tonnage growth in air freight and 19 pct volume growth in ocean freight.
DHL Solutions raised its sales revenue in the core contract logistics area by 10 pct, ranking it fourth on the global market.
DHL Logistics registered the strongest growth rates in the Asia-Pacific region and the Americas, with sales revenue increases there in the double-digit range. DHL Logistics' growth strategy will focus particularly on those regions in 2005, Appel said.
DHL Logistics expects an average annual growth of global air freight volume by 6.0 pct until 2010, Appel said, adding that the company also saw a steady increase in ocean freight volumes.
DHL Logistics is part of Deutsche Post's express and logistics unit DHL.
(Note: Unless otherwise stated, all figures/comparisons are for 2004/2003.)
www.welt.de,www.deutschepost.de
DHL buoyant as group profits soar to €3.4bn
AME Info – Company news 04-14-2005
DHL's own contribution to the consolidated group results are believed to have increased in line with tremendous growth in the regional business, and well ahead of world averages.
In an interim statement ahead of the release of the final report and accounts for 2004, the group confirmed earnings targets for last year were fully met. It saw a 7.9 per cent increase in revenues to euros 43.17 billion and group net income climbed by 21.3 per cent to about 1.59 billion euros or 1.43 euros a share, against 1.18 euros a share in 2003.
DHL, the Middle East's leading express and logistics group, today announced that Deutsche Post World Net (DPWN), its global parent group, last year recorded a 12.5 per cent increase in gross profits to euros 3.4 billion, close to the top end of forecasts.
This was the global background against which DHL predicted annual growth in excess of 20 per cent in the regional market and forecast that its Middle East business could double in the next five years on the back of runaway growth.
Drawing on an unprecedented region-wide analysis by global consultants AT Kearney, the Deutsche Post World Net (DPWN) subsidiary forecast that the current euros 218 million (AED 1.1 billion, US$291 million) Middle East express market will grow to euros 400 million (AED 2 billion, US$533 million) by 2010. DHL currently has nearly 50 per cent of the express market and with its own growth rates exceeding 20 per cent a year is confident of an increasingly impressive slice of the express cake.
Phil Couchman, DHL's Regional Director for the Middle East, said: 'The group results reflect what has been happening on a different scale in this part of the world. We have seen exceptional growth in a market that has taken off to the extent that our biggest area of operation will double within five years.
'We are also at the right end of the global industry trend of converging express and freight. This is the most interesting development in the Middle East industry and for a truly global operator such as DHL it will make a huge difference to the growth and scope of the business.'
DPWN confirmed that its EBITA target for 2005 remains at euros 3.6 billion. Edgar Ernst, the group's Chief Financial Officer, said: 'Over the past 10 years, the group has been focusing on privatisation and internationalisation. Our latest results show how far we have come in this process.'
The group confirmed that all four corporate divisions, mail, express, logistics and financial services met their earnings targets for 2004 and exceeded the comparable 2003 figures.
The Management Board plans to propose a dividend of 50 cents a share for 2004. The previous year's dividend was 44 cents.
About Deutsche Post World Net
Deutsche Post World Net is the world's leading logistics group.
Its integrated Deutsche Post, DHL and Postbank companies offer tailored, customer-focused solutions for the management and transport of goods, information and payments through a global network combined with local expertise. Deutsche Post World Net is also the leading provider of Dialog Marketing services, with a unique portfolio of efficient outsourcing and system solutions for the mail business. Some 380,000 employees in more than 220 countries and territories worldwide generated revenue of €43 bn ($58 billion) in 2004.
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DPWN Press Release 13 April
DHL Logistics records double-digit growth
Growth driver within the Deutsche Post World Net Group
Striving for leading global market positions
DHL LOGISTICS and its DHL Danzas Air & Ocean and DHL Solutions businesses performed extremely well in fiscal year 2004: With its 32,000 employees worldwide, Deutsche Post World Net's logistics expert raised its revenues by 15.4 percent to about EUR 6.8 billion in the growth market for global logistics services and tailor-made sector solutions. Operative earnings (EBITA) grew by 36.4 percent to EUR 281 million; the return on sales rose from 3.5 percent to 4.1 percent. "Our impressive results show that we have successfully advanced our growth course and succeeded in convincing many new customers of our global capacity in a highly competitive market, "Dr. Frank Appel, Corporate Board Member LOGISTICS and Corporate Services, noted today at a press conference in Zurich. "Our goal is to not only become No. 1 in air freight, but also No. 1 in ocean freight and one of the top 3 players in contract logistics."
DHL LOGISTICS managed to strengthen its market position in both business fields.
DHL Danzas Air & Ocean recorded double-digit tonnage growth in air freight (+24%) and double-digit volume growth in ocean freight (+19%). Renato Chiavi, COO of DHL Danzas Air & Ocean, said: "Since its integration into Deutsche Post, the long-standing Danzas company has continued its success story and is now one of the clear leaders in global competition among air and ocean freight providers. Our experience allows us not only to fulfill all our customers' needs for transparency and control across the entire supply chain, but also to handle the increasingly complex security requirements of customs, airlines and ports proactively and efficiently."
DHL Solutions raised its revenues in the core contract logistics area by 10 percent, ranking it fourth on the global market (previous year: sixth). The focus here is on the sector-specific organization and logistic handling of entire supply chains. The company managed to extend 85 percent of the existing contracts in fiscal year 2004 – a high share that exceeded the previous year's value by another 15 percent. Bernd Flickinger, COO of DHL Solutions, said: "In addition to our highly satisfied existing customers we also generated new business in the United States, France, Germany and the Netherlands, among others. We have noted particularly strong growth impulses in the electronics/telecommunications and Fast Moving Consumer Goods sectors."
From a regional perspective, Asia Pacific and the Americas proved the strongest growth engines within DHL LOGISTICS with revenue increases in the double digits. According to Corporate Board Member Appel, the company's growth strategy will focus particularly on these regions in 2005. This applies just as much to air and ocean freight as to the solutions business.
Appel: "Forecasts foresee average annual growth of global air freight volumes by 6 percent until 2010. We also expect a steady increase in ocean freight volumes. In addition, the trend toward industrial outsourcing persists, which is also opening up promising new perspectives for our solutions business. DHL Danzas Air & Ocean and DHL Solutions are very optimistic about the future."
