Thursday 29th Sep 2016 - Logistics Manager

DHL invests to meet profit targets

Deutsche Post DHL has set out ambitious investment plans for its forwarding and express businesses as it looks to boost operating profits from its DHL divisions to 1.9bn euros.

In the Express business it is investing $50m in expanding its hub in Cincinnati.  Work is also due to start soon on a new hub for North Asia at Shanghai’s international airport, representing an investment of US$175 million.
 
DHL Express recently began to offer a new flight route that spans the globe by linking Hong Kong, Los Angeles and Leipzig.

The group is also It is also investing in a new IT infrastructure for the Global Forwarding business.

Deutsche Post DHL is looking for an operating profit of 1.9bn euros from its DHL divisions this year, CEO Frank Appel has told shareholders. Last year’s earnings of 1.7bn euros were an improvement of nearly 55 per cent on the previous year.

The group expects the DHL divisions be the engine of growth over the coming years producing annual earnings growth of 13 – 15 per cent between 2010 and 2015.

“2011 was a very good year for our group”, said Appel. “We met all of our targets and have – by continuing to implement our Strategy 2015 – further bolstered the foundation for future growth.” The positive start into the current year – the group increased revenues and earnings in all divisions in the first quarter – pointed to a continuation of the company’s profitable growth trend.”

The group aims to stabilise profitability in its Mail division at 1 – 1.1 bn euros.

“Today we are much more capable of adapting quickly to a volatile business environment than we were just a few years ago,” said Appel.  “As a result, we can use opportunities at any time as they arise and respond at short notice to challenges that emerge. Combined with our strong competitive position, we are well prepared for the future.”