Sales rose from €3.5bn in 2012 to 3.6bn at DHL Supply Chain in the second quarter, but operating profit fell to €79m from €101m last year, largely as a result of one-time expenses related to the disposals and small restructuring charges.
The group said adjusted for negative exchange-rate effects and the impact of the disposal of three non-core subsidiaries that were not part of the core business, revenues between April and June climbed by nearly six per cent, or about €200 million.
Growth was fuelled by gains in the Asia-Pacific region as well as in the automotive, retail and consumer sectors. During the second quarter of 2013, the volume of new contracts concluded with new and existing customers set a second-quarter record at €350 million, another clear demonstration of the division’s successful performance.
Operating profit (EBIT) in the Express division fell to €296m from €367m in 2012. The group blames one-time factors boosting last year’s figures. Otherwise it would have reported a double-digit gain in EBIT and a significant rise in the operating margin to more than nine per cent.
Revenue in the Global Forwarding, Freight Division fell by 6.3 per cent to €3.7bn. Operating earnings totalled €129m compared with €138m a year earlier. Volume and revenues in air cargo fell below the previous year’s level primarily due to weak demand in the “technology” and “engineering & manufacturing” sectors. Volume and revenues also decreased in ocean freight during the past quarter.
Total group sales were down marginally at €13.6bn while operating profit was up 14 per cent to €619m.
“Given the economic challenges we continue to face, we can be satisfied with our solid performance in the second quarter,” said Frank Appel, CEO of Deutsche Post DHL.
“Our strength in the international express business and in Germany’s parcel market has paid off once again in the past few months. Our focus on cash flow generation is also increasingly bearing fruit.”