Exel takeover fuels growth at Deutsche Post
German logistics and mail giant Deutsche Post has reported double-digit growth both in turnover and profits for the third quarter of the year.
Turnover rose by 35% to Euro14.9bn (USD17,4bn) compared with the third quarter a year earlier, while net profits added 30% to Euro537m.
The increases were driven by the integration of British supply chain giant Exel and financial group BHW as well as through organic growth, the former monopoly said.
The main contributor to the company results was again the logistics division, which is the strongest segment. Thanks to Exel, turnover increased by 100% to Euro6.1bn compared with the third quarter a year ago, while earnings before income and tax surged 70% to Euro189m.
‘We have achieved growth by the integration of Exel as well as by organic growth,’ a spokeswoman for the logistics giant said. The integration had not been an obstacle, but a driver for growth, she added.
In September, DP clinched a GBP1.6bn (USD3bn) logistics services contract with the British government. The company will provide all procurement and logistics services for 600 hospitals and other health providers.
Over the first nine months of this year the logistics division achieved turnover of Euro16bn, of which Euro8.61bn stemmed from newly acquired companies. Most of the latter figure was directly attributable to the purchase of Exel.
Seafreight transport volumes in the quarter increased by 82% to 574,000 teu and air freight performed slightly better with an 84% rise to 1.1m tonnes. Turnover from seafreight amounted to Euro736m, up 52%. Air freight also saw a 52% increase to Euro1.2bn.
The company’s shares dipped 2.2% to Euro21.87 yesterday afternoon on analysts’ predictions that even better results should be expected.
