Deutsche Post says volume declines stabilise
Deutsche Post DHL said the market downturn in its industry may have hit its lowest point in the first quarter, in which the company posted a slightly positive operating profit.
Deutsche Post DHL said the market downturn in its industry may have hit its lowest point in the first quarter, in which the company posted a slightly positive operating profit.
Over this three-month period, however, there was a sharper dip in the volume of goods it handled compared with the fourth quarter, the company said on 21 April.
Net profit reached nearly €1bn ($1.3bn) in the quarter, boosted by the market valuation of put options on its Deutsche Postbank shares. A year earlier, it had reported net profit of €407m.
Sluggish consumer spending and shrinking business investing are hurting shippers around the world, with the US being one of the hardest-hit markets.
In March, the company unveiled a strategic re-jig that will see it bundle its freight, supply chain and express delivery businesses in a bid to catch up with competitors.
Post’s stock trades at around 11.4 times 12-month forward earnings, according to Thomson Reuters StarMine, which weights analyst estimates according to their track record.
That is a discount to UPS and FedEX, which trade at 18.8 and 15.9 times EPS, respectively, as investors worry that Deutsche Post is losing ground against rivals and has limited growth potential in the letter mail market.
