Exel acquisition lifts Deutsche Post figures
Deutsche Post said it boosted the sea freight business of its subsidiary DHL last year, both through the acquisition of Exel and through organic growth, writes Katrin Berkenkopf in Cologne.
‘We notched significantly increased volumes from existing business and with new customers,’ the group said.
With a volume of 2.4m teu, DHL should be the number one sea freight forwarder globally in terms of transport volume, although competitor Kuehne+Nagel is considerably larger when it comes to turnover.
The 2.4m teu contrasts with only half of that volume seen a year earlier, which demonstrates the leap ahead that the acquisition of Exel meant for DHL’s Global Forwarding business.
The growth in revenue is clearly lagging behind the volume increase, however. Sea freight turnover grew by 41% to EUR2.66bn (USD3.5bn). Deutsche Post pointed out that a dip in freight rates on high-volume routes had a negative impact on finances.
Kuehne+Nagel last week reported a seaborne transport volume of 2.3m teu and turnover of SFr8.3bn (USD6.8bn). Overall, the logistics division of Deutsche Post which includes ocean and air freight, supply chain business and land-based freight business recorded a turnover of EUR22.9bn, up from EUR9.9bn.
Acquisitions, first of all that of Exel, account for EUR11.6bn of the increase. Earnings before interest and taxes grew from EUR346m to EUR762m. Deutsche Post chief executive Klaus Zumwinkel reiterated his forecast of operating profits in logistics reaching EUR1.2bn by 2009. For the current year, he expects a rise of 15%. ‘In logistics, we are number one in the world,’ he stated.
Mr Zumwinkel said Deutsche Post had managed the turnaround in its express business. The division, which had suffered from problems in the US, posted operating profits of EUR325m after a loss of EUR23m a year earlier.
