Profits double at DHL Supply Chain
Operating profit more than doubled at DHL Supply Chain in the second quarter rising from 53m euros to 115m euros.
Parent group Deutsche Post DHL said the significant improvement was supported by strict, cost management and the gain on the disposal of a US subsidiary. In addition, the previous year’s result contained restructuring expenses of 17m euros.
In April, Deutsche Post DHL sold Exel Transport Services to Chicago-based Hub Group for $83m. ETS, which provides agent-based intermodal and truck brokerage services, has been renamed Mode Transport.
Sales fell 3.4 per cent to 3.2bn euros. However, the group said this was down to to negative exchange-rate effects and the sale of the US subsidiary that was not part of the division’s core business. Excluding these effects, revenue would have climbed by 6.1 per cent.
The Express division moved back into profit with an EBIT of 244m euros compared to a loss of 30m euros in the second quarter of 2010. The group said “In addition to revenue and volume growth as well as systematic cost management, the successfully completed restructuring measures played a major role in this increase. During the same period last year, these measures resulted in non-recurring expenses in an amount of EUR 228 million.”
EBIT in the Global Forward and Freight division were up 13.1 per cent to 112m euros on sales up 3.6 per cent to 3.7bn euros.
Sales in the Mail division were stable but operating profit was down as a result of discounts being offered to customers following the imposition of value added tax in July 2010. EBIT was 25 per cent down on last year at 183m euros.
The group is now projecting a full year operating profit of 1.6-1.7bn euros for DHL, while for the group as a whole it is looking for an operating profit of 2.2-2.4bn euros.
Chief executive Frank Appel said: “The second quarter once more proves the quality and sustainable nature of the efficiency gains we have achieved over recent years.”
“We remain confident concerning our future business development, also against the backdrop of a more normalised level of global economic activity.”