Deutsche Post Q3 EBIT 560-860 mln eur vs 484 mln eur
Deutsche Post AG will report next Thursday that third quarter EBIT rose to between 560-860 mln eur from 484 mln, as strength in logistics and financial services operations compensated for weakness in its domestic mail operations, analysts said.
They expect third quarter sales to reach between 11.040 and 11.881 bln eur, up from 10.669 bln eur.
Third quarter net is seen between 290 and 408 mln eur, up from 169 mln, analysts said. They noted that part of this increase stems from accounting changes, as Deutsche Post’s EBIT figure benefits from the discontinuation of goodwill amortisation, which carries through to the bottom line.
During the 2.00 pm CET conference call, analysts will focus on Deutsche Post’s efforts to integrate its DHL express operations in France and the UK.
Chief executive Klaus Zumwinkel told the German press last month that the process continued to be problematic in these countries, and that he had sacked the head of DHL’s UK operations.
The matter is significant because Deutsche Post must now focus on integrating Exel PLC, which it agreed to acquire for 5.5 bln eur last month.
‘I don’t expect any positive surprises,’ LRP analyst Per-Ola Hellgren said.
‘I assume that Deutsche Post will show improvement at its US business, and you will certainly see an effect if it says its business is not doing well there.’
Analysts also do not expect Deutsche Post to change its full-year guidance.
Deutsche Post last month reaffirmed its 2005 EBIT will reach at least 3.6 bln eur and that its consolidated net profit will exceed last year’s amount by at least 500 mln eur.
At that time it said that reduced pension costs and pension provisions outweigh the costs associated with integration challenges at its Express business.
DZ Bank analysts also do not expect a great deal of new information from the company next week.
‘We expect not too much newsflow in the next few weeks until the takeover of Exel and BHW Holding is completed,’ DZ Bank analysts wrote in a recent note to clients.
‘That’s why we only see very low upside potential in the short term.’
