Deutsche Post DHL continues on growth path in third quarter –full-year earnings guidance improved

Mumbai, November 11, 2010: Deutsche Post DHL, the world’s leading postal and logistics group continued the sound performance of the first half of 2010 during the third quarter, generating another double-digit increase in revenue. Despite a slight decline in the MAIL division, also resulting from a regulatory change in value-added tax that took effect in July, consolidated revenue rose 13.9 percent to EUR 12.8 billion driven by strong growth generated by all three DHL divisions. In particular, this performance reflects increased transport volumes, higher freight rates and the continuing success in attracting new customers. During the past quarter, the Group also profited from positive currency effects.
Additional margin gains in the DHL divisions also resulted in the significant increase in profitability. Underlying EBIT totaled EUR 543 million, 43.7 percent above the previous year’s level. Efficiency improvements also contributed significantly to the Group’s ability to generate a consolidated net profit of EUR 226 million in the third quarter, following the loss of EUR 83 million in the same period last year.
“The company’s very good performance in the third quarter demonstrates once again that we have an exceptionally good position that allows us to profit tremendously from positive economic trends,” said Deutsche Post DHL CEO Frank Appel. “Our strategy is robust, our efficiency programs are paying off, and our customers are rewarding our efforts.”

Third quarter 2010
In the third quarter of 2010, reported EBIT more than doubled, rising from EUR 231 million in the same period last year to EUR 545 million in 2010. In addition to the significant revenue and profitability improvements another factor behind this increase was the marked reductions in non-recurring expenses that were realized as planned. While in the previous year, non-recurring expenses totaled EUR 147 million, no noteworthy nonrecurring expenses occurred during the third quarter of this year. The Group’s net financial result improved as well. At minus EUR 222 million, it was well above the previous year’s total of minus EUR 310 million. This improvement largely reflects changes in the valuation of financial instruments related to the sale of Postbank: While last year’s figure included negative effects totaling EUR 188 million, the effect in relation to the Postbank sale had only an impact of minus EUR 123 million on the net financial result in the third quarter of this year. The consolidated net profit after minorities climbed to EUR 226 million. This equals an improvement in earnings per share to EUR 0.19. In the same quarter last year, the company reported a consolidated net loss of EUR 83 million and earnings per share of minus EUR 0.07.
EXPRESS division: restructuring bears fruit
In the EXPRESS division, the positive development of the first half of 2010 continued in the third quarter. Revenues were up 11.7 percent to EUR 2.7 billion (2009: EUR 2.4 billion) primarily driven by significant increases in international shipments. This gain more than offset decreases in the day-definite domestic business, mostly resulting from the sale of the domestic express businesses in the United Kingdom and France. Higher income from fuel surcharges also contributed to the rise in revenue. The division’s earnings improved markedly as well. Underlying EBIT rose from EUR 131 million in the same quarter last year to EUR 194 million in the third quarter of 2010, an increase of 48.1 percent. The improvement reflected the successful refocusing of the express business: in addition to higher revenue, the significant profitability enhancement resulted in particular from the completion of the restructuring in the United States, the withdrawal from the domestic express business in the United Kingdom and France as well as the efficiency enhancing programs successfully implemented around the world.

DHL – The Logistics company for the world
DHL is the global market leader in the logistics industry and “The Logistics company for the world”. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 300,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting climate protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 46 billion Euros in 2009.
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This release was published on openPR.