50pc profits rise at Deutsch Post DHL

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Deutsche Post DHL has reported a 50 per cent rise in operating profit (underlying EBIT) to 2.2bn euros for 2010, while sales were up 11.4 per cent to 51.5bn euros.

Chief executive Frank Appel said: “Our strong performance in 2010 clearly demonstrates that we positioned ourselves at an early stage to be fit for the economic upswing and that our Strategy 2015 is increasingly bearing fruit. This past year was an important milestone on our way to sustainably increasing the company’s earnings strength.”

The Supply Chain Division moved back into profit, producing an EBIT of 274m euros against a lost of 132m euros in 2009 while sales were up 9.2 per cent to 13.3 bn euros.

Underlying operating profit rose 42 per cent in the Global Forwarding, Freight Division to 390m euros on sales up 27.6 per cent to 14.3bn euros. the group said a slowdown of the growth rates experienced towards the end of 2010 was primarily a result of the stabilisation of freight rates over the course of the year.
As a result of the strong growth in demand, shortages of freight capacity occurred for most of 2010. This resulted in strongly increasing levels for freight rates. During the year, the division succeeded in passing on the higher rates to its customers, though with some time lags. As a result, there was a negative impact on margins until the third quarter.

The Express division also profited from the recovery of the global economy. Cross-border shipments generated a double-digit revenue increase and overcompensated the decrease in day-definite domestic products resulting from the divestiture of the domestic express businesses in the United Kingdom and France. In all regions – except Europe – revenues grew at double-digit rates. Total sales were up 12 per cent to 11.1bn euros while EBIT rose from 235m euros to 785m euros.

The Mail division saw sales fall slightly to 13.8bn euros while EBIT was 19 per cent down at 1.4bn euros.


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