Deutsche Post DHL predicts its Group EBIT will increase to 3.35 – 3.55 billion euros by 2015 in its mid-term targets.
The post and logistics business’s mid-term profitability targets are consistent with its Strategy 2015 plan, which foresee the DHL divisions achieving average annual growth of 13 per cent to 15 per cent between 2010 and 2015.
At an investor event held in London CEO Frank Appel and CFO Larry Rosen also explained how the targeted earnings improvement is to be realised through profitable growth in the different divisions.
The mail division is projected to contribute a minimum of 1 billion euros to group EBIT in 2015. Furthermore, Deutsche Post DHL anticipates a reduction of corporate centre/other expenditures from around 400 million euros today to about 350 million euros by 2015.
Appel said: “In recent years, we succeeded in positioning ourselves exceptionally well in the global growth markets and laid the foundation for continued profitable growth into the future. We have stabilized earnings in the MAIL division and are now capitalizing on the tremendous growth opportunities at DHL. The outlook ahead gives us good reason to be optimistic.”
DHL’s supply chain division concluded new contracts with a volume of more than 1 billion euros for the fourth consecutive year in 2011. The firm reckons the trend toward outsourcing, the gradual emergence of true global markets instead of local ones and customers’ growing need for comprehensive solutions from a single source will increase the division’s operating profit.
Its global forwarding, freight division will aim to improve its strong market position in ocean freight. Besides initiatives targeting growth, the division is planning to implement a transformation program dubbed the “New Forwarding Environment”. Its objectives include increasing efficiency through new IT systems and greater automation and, as a result, boosting productivity and further improving profitability.
The express division’s operating margin will be enhanced by continued strong volume growth, systematically expanding the express aviation network and improved efficiency. The business will keep its focus on the transport of time-definite international shipments.