Deutsche Post World Net’s profits leap 45percent
Deutsche Post World Net, the world’s largest express, mail and logistics company has become the latest company to release its figures for the second quarter of the year. The company experienced strong growth with top line revenues rising by 11.6% to €10,513m from €9,422 in the same quarter in 2003. Operating profit rose by 45.2% to €752m.
Mail revenues increased by 3.6% in the quarter to €3,016m whilst operating profits grew by 15.1% to €419m. Management put the increase down to the performance of its Direct Marketing and International Mail Business divisions.
Express
Its express revenues jumped by 26.9% to €4,392m and operating revenues also increased strongly by 44.1% to €98m. The reason behind such a large rise was the inclusion of Airborne Express revenues and profits for the first time. Margins also rose from 1.96% to 2.23% although DHL in the Americas continues to make losses. Management is confident that this region will break even in 2005.
Logistics
The Logistics division, which includes DHL Solutions and DHL Danzas Air & Ocean, saw turnover grow to €1,639m, an increase of 19% compared with the same quarter a year ago. Operating profits increased by 58.3% to €57m which management largely put down to the strong performance of its forwarding operations. Margins grew from 2.61% to 3.48%.
One of the most important events for DPWN in the last quarter was theIPO of its financial division, Postbank which will eventually benefit the company by €2.6bn. Although there has been speculation that it could use this money for acquisitions, it now seems likely that a major part will be used to pay down its pension liabilities as well as net debt. However management did comment that it would also be used to ‘broaden the base of its business’ which would suggest that further expansion of some sort is in the pipeline.
