Deutsche Post World Net meets 2008 profit expectations.
Deutsche Post reported that it has met its 2008 profit target, thanks to strict cost management and cash conservation.
The Group has met its 2008 profit expectations.
Deutsche Post reported that it has met its 2008 profit target, thanks to strict cost management and cash conservation. Full-year underlying EBIT, or earnings before interest and tax excluding non-recurring effects, amounted to just above the targeted 2.4 bn euros.
“We have taken vigorous action to minimize costs and conserve cash through our Roadmap to Value initiatives during the past year,” said Chief Financial Officer John Allan. “Those measures enabled us to deliver on our profit expectations, despite the weakening economic climate.”
Reported EBIT was significantly better than minus 1 bn euros, including the already communicated non-recurring negative effects tied to the restructuring of DHL U.S. Express, one-off charges in other businesses as well as writedowns on goodwill and intangible assets within the Corporate Division Supply Chain/Corporate Information Solutions. Those negative effects were countered by the repayment from the German government following successful EU state aid proceedings.
As expected, fourth-quarter trading volumes in most business units continued to soften in a year-on-year comparison. In Air and Ocean Freight volumes weakened, with a double-digit decline rate reflecting the slowing of the global economies.
Increasing express volumes in Eastern Europe, Middle East and Africa
Express volumes outside the U.S. turned negative in the fourth quarter, with only the volumes in the region Eastern Europe, Middle East and Africa (EEMEA) still showing a mid-single digit percentage increase. In Germany mail volumes in the fourth quarter continued the stable development experienced in the first three quarters of the year.
Fourth-quarter revenues in the Supply Chain / CIS division also developed in line with the rate seen in the first nine months of the year.
Year-end net debt, helped by asset disposals including around 700 million euros received from Lone Star in December, was approximately 2.4 billion euros in comparison with 2.9 billion euros at the end of 2007. The cash position stood at around 1.4 billion euros on Dec. 31, following the successful disposal of assets.
Deutsche Post World Net doesn’t expect to be in a position to issue a guidance for 2009 before the end of the first quarter. However, the Group expects business conditions to continue to be tough in 2009 due to the impact of the economic downturn on many of its customers.
