Deutsche Post outlook boosted by DHL
German mail and logistics company Deutsche Post said on Thursday second-quarter operating profit rose 21 percent, boosted by its DHL express and logistics units, and reiterated its annual goals. Earnings before interest and tax (EBIT) rose to 781 million euros (USD942 million) in the second quarter from 647 million euros a year earlier. Net profit rose 76 percent to 484 million euros. Deutsche Post reiterated that it expects 2005 operating profit of at least 3.6 billion euros as it benefits from continuing growth in world trade. That compares with full-year EBIT of 3.35 billion euros in 2004. Earnings this year benefit from the end of amortization under international accounting rules and a lower tax rate. Quarterly sales increased 4.4 percent to 10.96 billion euros from 10.5 billion in the second quarter of 2004. The company is investing $1.2 billion in DHL in the United States, where it is vying for a larger share of the domestic market with FedEx Corp. and UPS. The German company reiterated its goal to break even in the fourth quarter of next year in the U.S. business, with losses of up to 300 million euros expected in 2005.
