Deutsche Post DHL posts first quarter profit of US$462 million

DEUTSCHE Post DHL has announced first quarter net profit increased 27 per cent to EUR325 million (US$461.78 million) - if the last year's $2 billion sale of its Postbank were removed through the equation.


That extraordinary income item put last year's net profit to $2.45 billion. Without it, 2010 first quarter EBIT only increased 22.9 per cent to EUR629 million.


Group revenue rose 6.9 per cent to EUR12.8 billion during the first three months of 2011. The positive performance was attributed to strong growth in all three DHL divisions, particularly, in Asia and other fast growing regions, on the back of continued world economic recovery and rising transport volumes.


The group's three divisions contributed EUR363 million to the overall result, representing an increase of almost two-thirds compared with the prior year's EUR219 million.


"We got off to a dynamic and very successful start in 2011," said CEO Frank Appel. "The first quarter clearly demonstrated that our growth is based on a broad and very strong foundation."


The group's capital expenditure totalled EUR252 million in the first quarter, representing an increase of nearly 30 per cent versus the previous year's level of EUR195 million.


The group confirmed its outlook that full-year 2011 EBIT is forecast to be between EUR2.2 billion and EUR2.4 billion, with the mail division expected to contribute between EUR1 billion and 1.1 EUR billion. The company expects double-digit increases in operating profit of EUR1.6 billion and EUR 1.7 billion.


In the first three months of 2011, revenue in the mail division was EUR3.5 billion, the same level as the previous year, with the parcel business contributing EUR700 million to the division's total revenue.


EBIT in the mail division totalled EUR373 million in the first quarter, down from the previous year's level of EUR389 million.


The express division saw revenues climb 5.5 per cent in the first three months of the year to EUR2.8 billion, largely due to higher volumes of international shipments. The express business performed particularly well in the Americas and Asia-Pacific regions, where double-digit revenue growth was generated. Operating profit almost doubled to EUR216 million.


In the global forwarding, freight division, revenues in the first quarter grew by 14.9 per cent to EUR3.6 billion on the back of double-digit revenue increases in air and ocean freight as well as the European overland transport segment. EBIT increased by 30.2 per cent to EUR69 million in the first three months of this year.


Revenues generated by the supply chain division during the first quarter of 2011 amounted to EUR3.3 billion, up 7.5 per cent year on year. EBIT rose 39.3 per cent to EUR78 million.
(Source:http://www.schednet.com)