Deutsche Post DHL has increased its profit targets for the year after a good second quarter. It said it has made an upward adjustment to its earnings guidance for the current fiscal year and now expects to generate group EBIT of between 2.6bn euros and 2.7bn euros.
The group said it expected to see moderate growth in the world economy fuelling the increase in operating profits. Previously, it had said it expected operating profits for the year of 2.5bn euros to 2.6bn euros.
Sales in the Supply Chain division rose 12.5 per cent to 3.5bn euros in the second quarter fuelled in particular by gains in the Asia Pacific region as well as in the automotive and life sciences and healthcare sectors.
New contracts totalled 330m euros with improved profit margins. EBIT at 101m euros was down 10m euros – but the group pointed out that last year’s figure was distorted by a 23m euro profit on the disposal of a US subsidiary. Without that, EBIT would have risen 15 per cent.
Operating profit in the Global Forwarding and Freight Division was up 19.1 per cent to 115m euros while sales rose by 5.7 per cent to 4bn euros.
The Express division saw EBIT rise by 50 per cent to 367m euros. However, the group said that the figures had been affected by a number of one-offs. Without these the rise in EBIT would have been five per cent. Sales were up 10.7 per cent to 3.2bn euros.
In the German Mail business, the group has been building the parcels operation which now accounts for about a quarter of the total revenue in the division. EBIT fell from 186m euros to 38m euros as a result of a one-off VAT payment – otherwise there would have been a two per cent rise.
The second quarter performance means the ffor the first half of the year, the group’s operating profit rose 3.6 per cent to 1.2bn euros on sales up 5.8 per cent to 27.1bn euros.
“We continue to perform well,” said group CEO Frank Appel. “The excellent market positions of our brands and divisions in the world’s growth markets are paying off. We have a strong foundation for generating long-term improvements in revenues and earnings.”