Supply chain profits boost for Deutsche Post DHL

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Profits rose 20 per cent at DHL Supply Chain in the third quarter with EBIT rising to 99m euros (£85m) from 83m euros (£71m) last year.

Revenue was flat at 3.3bn euros (£2.8m). However, adjusting for exchange rates and consolidation effects, sales were up 6.2 per cent.

The group said growth was fuelled in particular by significant growth in the Asia-Pacific region as well as the life sciences & healthcare and automotive sectors.

“At 280m euros (£240m), the volume of new contracts concluded with new and existing customers remained very high. The margin gains achieved in these new contracts also underscore the division’s ongoing successful performance.”

The Global Forwarding and Freight business reported a 22 per cent rise in EBIT to 122m euros (£105m) on sales up 1.9 per cent to 3.8bn euros (£3.3bn).

“While revenues in air and ocean freight came under pressure during the third quarter, the Group’s overland transport business continued to produce strong gains. Even though fuel prices remained high, the division profited from lower freight rates, improved purchasing terms and its concentration on selective growth in attractive business areas.”

EBIT in the Express division was up 10 per cent to 219m euros (£188m) on sales up 7.7 per cent to 2.9bn euros (£2.5m).

And the Mail division also performed well producing a 17.5 per cent rise in EBIT to 302m euros  (£259m) on sales up 2.6 per cent to 3.4bn euros (£2.9bn). The group said the Mail division boosted the growth momentum of its parcel business thanks to dynamic internet retailing.

“Our third quarter performance underscores our exceptional market positioning once again. said group chief executive Frank Appel.

“We are located in all of the regions and markets that continue to generate particularly strong growth: in the emerging markets of Asia, the Middle East and Latin America as well as in the dynamic German parcel market.”

Group EBIT was 18.5 per cent up for the third quarter at 646m euros (£554m) on sales up 2.5 per cent to 13.1bn euros (£11.2bn).

For the first nine months operating profit was up 40 per cent to 1.8bn euros (£1.54bn) on sales up 3.2 per cent to 38.8bn euros (£33.3bn).

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