Deutsche Post presents interim financial statements of as of September 30
– Revenue up 16 percent to €28.8 billion
– Net profit from operating activities (EBITA) down 5.3 percent
– Acquisition of majority stake in DHL lifts foreign revenue to roughly 40 percent of consolidated revenue
– Cash flow increases, low net financial debt down further
– Guidance for year as whole confirmed
Deutsche Post World Net presented its figures for the first nine months of the current year in Frankfurt/ Main today. The Group increased revenue year-on-year by just under 16 percent to €28.8 billion, mainly as a result of the acquisition of a majority stake in DHL International, the world leader for cross-border courier and express services. In line with Group strategy, the proportion of revenue generated abroad rose from just over 31 percent to roughly 40 percent.
Profit, i.e. net profit from operating activities (EBITA), for the first nine months amounted to €1.8 billion, down 5.3 percent on the prior-year period due to the ongoing tight economic situation. Net profit after tax for the same period was in line with last year's results at €1.3 billion. Consolidated net profit was impacted by the Brussels decision on state aid, which requires Deutsche Post World Net to pay €850 million Euro. As a result, the consolidated net profit for the first nine months of 2002 dropped to €392 million (the comparable figure for the prior-year period was €1.3 billion).
The quality of Deutsche Post World Net's balance sheet as of September 30, 2002 remains extremely high. Over €1 billion was invested in capital expenditure in the first nine months of 2002, while cash flow improved from € 1.9 billion to €2 billion and the already low level of net financial debt was reduced still further to an extremely good €1.5 billion.
Dr. Klaus Zumwinkel, Chairman of the Board of Management of Deutsche Post World Net, expressed his satisfaction with business developments given the difficult economic situation: "We have substantially increased profits in our Logistics and Financial Services Corporate Divisions despite the difficult market. This shows that our cost-cutting measures are having the desired long-term effect. Revenue at the Express Corporate Division more than doubled as a result of the acquisition of DHL, while profits developed in line with projections. Revenue in the Mail Corporate Division was stable, although net profits were down as expected. All in all, we are satisfied with the results in light of the difficult economic situation and will be able to meet our targets for the year as a whole".
Dr. Edgar Ernst, Deutsche Post World Net's Chief Financial Officer, gave more details of the forecasts for fiscal year 2002: "We will close fiscal year 2002 with revenue of slightly less than €40 billion and a net profit from operating activities (EBITA) that is roughly 10 to 15 percent lower than in 2001. The one-time payment of €850 million resulting from the European Commission's decision on state aid will have a major impact on our consolidated net profit." The following EBITA margins are forecast for the year as a whole: Mail Corporate Division at least 14 percent, Express (not including DHL) at least 2.7 percent (DHL is expected to break even), and Logistics 2.1 percent; the return on equity in the Financial Services Corporate Division is expected to be at least 9 percent. "This will strengthen the foundations for solid future growth," according to Ernst.
The Mail Corporate Division recorded revenue of €8.6 billion in the period under report. This meant that revenue remained stable year-on-year, despite the economic downturn. Net profit from operating activities (EBITA) in the Mail Corporate Division amounted to roughly €1.3 billion in the first nine months of 2002, down 17.7 percent on the previous year. The main reasons for this were weak demand at retail outlets in particular and increased materials expense.
The Express Corporate Division is now the Corporate Division of Deutsche Post World Net generating the most revenue (€9.1 billion), thanks to the first-time consolidation of DHL. Revenue more than doubled in this area in comparison to the previous year. In the Express Business Division, the net profit from operating activities (EBITA) totaled €108 million, slightly down on the same figure for the previous year (€110 million). DHL reduced its losses for the period January to September as expected. The other EuroExpress Business Divisions recorded net profit from operating activities (EBITA) of €110 million. DHL expects to break even again by the end of the year.
The Logistics Corporate Division contributed €6.6 billion to consolidated revenue. The weak dollar in comparison to last year and lower carrier rates led to a decline of 3.7 percent. The net profit from operating activities (EBITA) in Logistics rose 27.6 percent to €148 million, and by more than 61 percent in the third quarter. Strict cost management in the Intercontinental Business Division in particular more than offset the effects of weaker demand.
In the Financial Services Corporate Division, the drop in income of 5.1 percent to €5.6 billion is mainly due to a drop in interest income caused by lower interest rates. However, net profit from operating activities (EBITA) increased clearly by more than 22 percent to €435 million. Here, too, the increase in the third quarter was particularly marked, at over 52 percent.
As a result, the Express, Logistics and Financial Services Corporate Divisions were able to further expand their share of revenue in line with corporate strategy. This rose from 66.7 percent in the first nine months of 2001 to the current figure of 71.2 percent.
The segment results (EBITA) also clearly show the change in the Group's structure. Thus the Express, Logistics and Financial Services Corporate Divisions increased their share of the total net profit from operating activities generated by all Corporate Divisions from 27 percent to roughly 35 percent.
Press Contacts:
Deutsche Post World Net
Norbert Schäfer
53250 Bonn
Phone: +49 (228) 1 82-99 88
Fax: +49 (228) 1 82-98 22
e-Mail: [email protected]
