Tag: Courier/Express/Parcels

DHL plans to spend USD50 mln on facility expansion in S. Korea.

Posted by | Nov 10, 2006 | |

DHL, the logistics unit of Germany’s Deutsche Post AG, said Thursday it plans to invest USD50 million in South Korea to expand facilities. The investment is mainly aimed at increasing DHL’s logistics facilities at Incheon International Airport, 40 kilometers west of Seoul, which is the main gateway to South Korea, the company said in a statement. DHL’s head of Asia-Pacific operations, Scott Price, said in the statement that part of the investment will be used to upgrade its service center in the nation’s southern port of Busan.

Read More

DHL to expand in Korea

Posted by | Nov 9, 2006 | |

DHL plans to invest about USD50 million to boost capacity and improve service in South Korea.

The bulk of the investment will go toward expanding its current DHL Express facility at the Incheon International Airport, said Scott Price, chief executive for DHL Express in the Asia-Pacific region.

“DHL will also invest in the upgrading and expansion of its service centers, including technological innovation and more than 100 new vehicles, in Korea,” the Korea Times quoted Price as saying. Price was in Inchon to participate in the International Transport & Logistics Fair 2006 at BEXCO.

DHL’s investment plan complements the South Korean government’s vision of establishing Inchon as a preferred logistics hub to serve the region, he said.

According to the Ministry of Construction and Transportation, air-cargo volumes between Korea and the neighboring region has increased by an average annual rate of 30 percent, led by freight traffic between Korea and China.

“Our commitment in Korea is largely driven by customer needs arising from the steady flow of trade volumes into and out of South Korea,” Price said.

The existing DHL Express facility in Inchon is operating beyond capacity. DHL has to expand its existing 2,000 square meter facility to meet projected growth estimated by Incheon International Airport Corp. 7 million tons of air cargo by 2020.

DHL’s infrastructure development plans involve the consolidation of existing service centers and upgrading of other facilities to offer customers enhanced operational and service capabilities.

Read More

DHL reduces loss in US Express

Posted by | Nov 9, 2006 | |

Deutsche Post announced yesterday, 3rd Quarter results up by a third on 2005. But the performance of its US Express division is a continuing cause for concern, dragging the rest of the Express business and the whole group down.

Headline growth was impressive, with consolidated revenue up by 35% to *14,887m and EBIT up 40% to *1.03bn compared with the same period last year. But these figures are flattered by the acquisition of Exel in early 2006.

The logistics business continues to perform reasonably. The Exel acquisition is running smoothly and the Division as a whole is gaining market-share. Revenue for the nine months was up to *16 billion, with *8.6billion coming from the acquisition of Exel. EBIT for the year-to-date was *513 million.

The problem area remains Express. The US Express division continues to lose money, although losses have been reduced by what was called a “three digit million euro amount”. CEO, Klaus Zumwinkel stated both in comments to analysts and in an interview earlier this week that the US Express business had 10% market share and that if it achieved 12% “we would be very happy”. Elsewhere the company described growth in Express as strong, with double-digit growth in revenue in Asia-Pacific. Overall results for Express revenue were down over Q3 2005 by 2.8% at *3,755million but EBIT was back in positive territory at *86million.

Read More

Exel takeover fuels growth at Deutsche Post

Posted by | Nov 9, 2006 | |

German logistics and mail giant Deutsche Post has reported double-digit growth both in turnover and profits for the third quarter of the year.

Turnover rose by 35% to Euro14.9bn (USD17,4bn) compared with the third quarter a year earlier, while net profits added 30% to Euro537m.

The increases were driven by the integration of British supply chain giant Exel and financial group BHW as well as through organic growth, the former monopoly said.

The main contributor to the company results was again the logistics division, which is the strongest segment. Thanks to Exel, turnover increased by 100% to Euro6.1bn compared with the third quarter a year ago, while earnings before income and tax surged 70% to Euro189m.

‘We have achieved growth by the integration of Exel as well as by organic growth,’ a spokeswoman for the logistics giant said. The integration had not been an obstacle, but a driver for growth, she added.

In September, DP clinched a GBP1.6bn (USD3bn) logistics services contract with the British government. The company will provide all procurement and logistics services for 600 hospitals and other health providers.

Over the first nine months of this year the logistics division achieved turnover of Euro16bn, of which Euro8.61bn stemmed from newly acquired companies. Most of the latter figure was directly attributable to the purchase of Exel.

Seafreight transport volumes in the quarter increased by 82% to 574,000 teu and air freight performed slightly better with an 84% rise to 1.1m tonnes. Turnover from seafreight amounted to Euro736m, up 52%. Air freight also saw a 52% increase to Euro1.2bn.

The company’s shares dipped 2.2% to euro21.87 yesterday afternoon on analysts’ predictions that even better results should be expected.

Read More

Deutsche Post reports 30% rise in Q3 profit

Posted by | Nov 9, 2006 | |

German logistics conglomerate Deutsche Post World Net has reported a double-digit increase in revenue and earnings in the third quarter through September.

Consolidated revenue rose by 35% from E11.0 billion to E14.9 billion in the period, boosted by the acquisitions of logistics service provider Exel and financial service provider BHW.Profit from operating activities (EBIT) rose by 40.1% to E1.03 billion, including the expected income of E276 million from calling the exchangeable bond on Postbank stock in July prior to maturity. Consolidated net profit was E537 million in the third quarter of 2006, compared to E412 million in the year-earlier quarter, corresponding to a 30.3% increase. “On the whole, the company is doing well: Logistics and Postbank continue to post exceptionally strong performance and have made rapid progress with respect to integration. At the bank we were even able to finalize the process earlier than planned,” said Edgar Ernst, CFO. “The mail and express divisions, which both suffered a drop in earnings in the second quarter, posted higher profits again in the third quarter. In view of the traditionally strong Christmas quarter, I am very confident for the remaining weeks of the year.”Deutsche Post World Net is the parent company of global express and logistics business DHL, and, following the 2005 purchase of Exel, is the largest contract logistics company globally.

Read More

Advertisement

Advertisement

Advertisement

P&P Poll

Loading

What's the future of the postal USO?

Thank you for voting
You have already voted on this poll!
Please select an option!



View ResultsHide Results

Post & Parcel Magazine


Post & Parcel Magazine is our print publication, released 3 times a year. Packed with original content and thought-provoking features, Post & Parcel Magazine is a must-read for those who want the inside track on the industry.

Subscribe to the Magazine

 

Pin It on Pinterest