DGAP-News: Deutsche Post DHL generates double-digit earnings growth in 2011 - higher dividend proposed
(firmenpresse) - DGAP-News: Deutsche Post AG / Key word(s): Final Results/Dividend
Deutsche Post DHL generates double-digit earnings growth in 2011 -
higher dividend proposed
08.03.2012 / 07:00
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Deutsche Post DHL generates double-digit earnings growth in 2011 - higher
dividend proposed
- Group reaches EBIT guidance: operating earnings grow to more than EUR
2.4 billion
- Dividend increase to EUR 0.70 per share proposed
- Higher investment to spur future growth
- EBIT expected to rise to between EUR 2.5 and EUR 2.6 billion in 2012
- CEO Frank Appel: 'We are making very good progress'
Bonn, March 8, 2012: Deutsche Post DHL, the world's leading postal and
logistics group, had a very successful fiscal year 2011, having generated
significant gains in both revenues and earnings. Compared with the previous
year, Group revenues rose by 2.8 percent to EUR 52.8 billion. Adjusted for
exchange-rate and consolidation effects, the company's revenues climbed
even more steeply at 5.3 percent, a reflection of the Group's excellent
positioning in rapidly growing markets. With its parcel business, the MAIL
division continues to profit from the fast-paced growth of Internet
retailing. The very strong performance of the logistics division resulted
largely from the exceptional market position of DHL in the world's growth
markets - particularly in Asia. This formed the basis for strong margin
improvements in the DHL divisions, which fueled an above-average increase
in the Group's EBIT. At more than EUR 2.4 billion, the Group's operating
earnings were almost one-third higher than the previous year's level,
reaching the earnings guidance that the company increased twice during
2011. Consolidated net profit totaled EUR 1.2 billion in the past fiscal
year. Excluding the valuation effects related to the Postbank sale, this
amounts to a rise of more than 50 percent year on year.
'2011 was a very good year for our Group,' said Frank Appel, CEO of
Deutsche Post DHL. 'We hit all of our targets, made very good progress with
the implementation of our Strategy 2015 and further bolstered the already
very strong platform for a sustainable expansion of our earnings in the
future.'
Guidance
Against the background of a moderately growing global economy, the Group
expects to produce further gains in revenues and earnings - driven by the
DHL divisions - during the current fiscal year. The company forecasts an
increase of Group EBIT to between
EUR 2.5 billion and EUR 2.6 billion. While the MAIL division is expected to
contribute between EUR 1.0 billion and EUR 1.1 billion to this figure,
operating earnings at DHL should increase to around EUR 1.9 billion.
Corporate Center/Other expenditures are forecast to again total about EUR
400 million. The Group's consolidated net profit is projected to improve in
line with the operating business in 2012. In addition, Deutsche Post DHL
also expects the positive earnings trend to continue beyond the current
fiscal year. In the process, the cost measures and growth programs
introduced in the MAIL division should further stabilize its profitability,
even if letter volumes continue to gradually decline. At the same time, the
Group reiterated that the operating profit at DHL is expected to increase
between 13 percent and 15 percent on average each year between 2010 and
2015.'Today, the Group is positioned better than ever,' Appel said. 'Be it in
the internet arena or the emerging markets of the world - we have a very
strong presence in exactly the places where growth is being generated. At
the same time, we have the flexibility we need to exploit opportunities as
they arise and to respond at short notice to challenges that emerge.
Combined with the development of additional products and solutions that are
designed to meet the special needs of our customers, we have an excellent
foundation for generating further profitable growth.'
Fiscal year 2011
In 2011, Deutsche Post DHL boosted its revenues by 2.8 percent to EUR 52.8
billion (2010: EUR 51.4 billion). Adjusted for exchange-rate and
consolidation effects, this amounts to organic growth in revenues of more
than EUR 2.7 billion (+5.3%) compared with the previous year. Thanks to the
improved revenues and good cost control, the company grew its operating
profit by more than EUR 600 million to over EUR 2.4 billion. With earnings
of EUR 1.7 billion and an improvement of nearly 55 percent compared with
the previous year's level, DHL was the growth driver in the Group once
again contributing the majority to the company's operating profit. In
addition to the strong revenue and efficiency gains, the expected absence
of non-recurring expenses, which had totaled about EUR 370 million in the
previous year, had a positive impact on operating earnings. The Group's net
financial income fell from EUR 989 million in 2010 to minus EUR 777 million
during the past fiscal year. This decrease was solely due to the valuation
of financial instruments related to the sale of Postbank. While last year's
financial result included positive effects of EUR 1.6 billion related to
the Postbank transaction, expenses totaling more than EUR 300 million were
incurred in 2011. This extraordinary effect also had a major impact on the
Group's consolidated net profit and overshadowed the underlying operating
improvement. As a result, net profit fell from EUR 2.5 billion in the
previous year to EUR 1.2 billion in 2011. This amounts to a decrease in
earnings per share to EUR 0.96 (2010: EUR 2.10). However, adjusted for the
Postbank valuation effects for both years, consolidated net profit and
earnings per share would have risen by more than 50 percent in 2011 to EUR
1.5 billion (2010: EUR 972 million) or EUR 1.21 per share (2010: EUR 0.80),
respectively.
Dividends
The Group plans to share this success with its shareholders: Given the
positive results of the past fiscal year and the Group's confidence about
its future performance, the Supervisory Board and the Board of Management
will again propose a dividend increase of EUR 0.05 per share to the Annual
General Meeting scheduled for May 9. Based on the consolidated net profit
adjusted for non-recurring items, this year's dividend proposal of EUR 0.70
per share represents a payout ratio of 58 percent. As a result, the Group's
dividend proposal is once again at the upper end of the range of 40 percent
to 60 percent that the company set as a target corridor for future dividend
payments with the introduction of its finance strategy in 2010.
Fourth quarter of 2011
During the final quarter of the year, the company continued on its growth
path with revenues rising to EUR 14.1 billion (+2.1%). Adjusted for
exchange-rate and consolidation effects, the Group boosted fourth-quarter
revenues in 2011 by nearly EUR 500 million (+3.5%) compared with the same
quarter in the previous year. Fueled by this rise in revenues and the
Group's increased efficiency, the company's operating earnings rose by 14.1
percent to EUR 599 million. While the Group's logistics division made the
biggest contribution to the Group's EBIT and its growth during this period,
the MAIL division also delivered a year-over-year increase. The valuation
of financial instruments related to the Postbank transaction also had an
effect on the net financial result in the fourth quarter and - compared
with the same period last year - had a negative impact of more than EUR 400
million on the development of the Group's net profit. As a result,
consolidated net profit fell to EUR 175 million (2010: EUR 487 million),
and earnings per share decreased to EUR 0.14 (2010: EUR 0.40). If the
Postbank valuation effects were excluded for both years, consolidated net
profit and earnings per share would have risen by more than 46 percent in
the fourth quarter as a result of the operating improvements to EUR 369
million (2010: EUR 252 million) or EUR 0.31 per share (2010: EUR 0.21),
respectively.
Capital expenditures and cash flow
In 2011, the Group significantly boosted capital expenditures, further
strengthening the company's foundation for future growth. At EUR 1.7
billion, capital expenditures increased by around EUR 450 million over the
previous year's level of EUR 1.3 billion. In the MAIL division, this
included the announced expansion of the company's parcel network in order
to enable above-average growth in this business in years to come. In
addition, capital expenditures were significantly increased for the DHL
divisions in order to further shore up the platform for continued expansion
and sustainable company success. The focal points of these investments
included a more efficient fleet of aircraft, state-of-the-art warehouses, a
world-class IT infrastructure and new vehicles. As a result of the
significant improvement of operating earnings and the considerable drop in
restructuring expenditures, the Group's operating cash flow climbed by EUR
444 million to EUR 2.4 billion (2010: EUR 1.9 billion). Similarly, free
cash flow rose by 55 percent, or EUR 265 million, to EUR 749 million (2010:
EUR 484 million). With net liquidity of EUR 938 million, the Group
continued to enjoy a very solid liquidity position at the end of 2011. This
total was indeed lower than the EUR 1.4 billion that the company had at the
end of 2010. However, this development primarily reflects the company's
planned increase in capital expenditures. Compared with the level at the
end of the third quarter, Deutsche Post DHL increased its liquidity by
nearly EUR 350 million.
MAIL division
Revenues in the MAIL division rose slightly to EUR 14.0 billion in fiscal
year 2011 (2010: EUR 13.9 billion). Despite the discounts that in 2011 the
Group has been granting its customers for an entire year for the first time
following the imposition of the value-added tax in July 2010, revenues in
the traditional mail business stabilized. At the same time, the company
profited extensively from the growth generated by the parcel business.
Thanks to growing Internet retailing and a product range that is tailored
to the needs of customers, the business accelerated its growth momentum as
the year progressed, resulting in an 11 percent rise in volume in the
fourth quarter. The total number of parcels shipped last year and the
revenues produced by them were also well above the 2010 level: while volume
rose by 10 percent, revenues in this business unit jumped by 9 percent,
hitting a record level of EUR 3.2 billion. As a result, the company's
flourishing parcel business is generating nearly 25 percent of total
revenues in the MAIL division. Together with strict cost management, it
also contributed to the stabilization of the division's profitability: at
more than EUR 1.1 billion, operating earnings finished the fiscal year only
very slightly below the previous year's level (2010: EUR 1.1 billion).
EXPRESS division
Revenues and earnings grew strongly in the EXPRESS division in 2011.
Revenues climbed to EUR 11.8 billion, an increase of 5.9 percent above the
previous year's level of EUR 11.1 billion. Adjusted for exchange-rate and
inorganic effects, which are primarily related to the divestment of the
division's domestic business operations in China, Canada and Australia,
revenues grew strongly by 10.9 percent in 2011. This strong performance was
driven primarily by double-digit growth in volume and revenues for
international shipments. The Asia-Pacific region once again underscored its
role as the growth engine of both the Group and the EXPRESS division. The
risein operating earnings was even higher: at EUR 927 million, EBIT in
2011 was 86.5 percent higher than the previous year's level of EUR 497
million. In addition to strong revenue and volume growth as well as
systematic cost management, successfully completed restructuring steps
played a major role here. In the previous year, these measures had led to
restructuring expenses of EUR 288 million.
GLOBAL FORWARDING, FREIGHT division
The GLOBAL FORWARDING, FREIGHT division increased revenues by 4.9 percent
from EUR 14.3 billion in 2010 to EUR 15.0 billion in 2011. Adjusted for
exchange-rate and consolidation effects, revenues climbed by 5.7 percent
during the past fiscal year. Even though air and ocean freight revenues
came under pressure in the second half of the year as market growth slowed
considerably, all business units contributed to the overall increase. The
overland transport business performed particularly well, producing revenue
growth of nearly 10 percent. Even though fuel prices remained high, the
division profited from lower freight rates, improved purchasing conditions
and the focus on selective growth in attractive business areas. As a
result, the division was able to achieve further margin improvements and
the division's profitability rose steeply: at EUR 429 million, EBIT in 2011
was 12.0 percent above the previous year's level of EUR 383 million.
SUPPLY CHAIN division
The contract logistics business of Deutsche Post DHL also generated
profitable growth in the past fiscal year. Revenues and earnings were well
above the previous year's level. The division reported a revenue increase
of 1.2 percent to EUR 13.2 billion (2010: EUR 13.1 billion). As a result of
portfolio adjustments made during 2011 - such as the divestment of a
subsidiary in the United States that was not part of the division's core
business - this result only partially reflects the division's operating
performance. Adjusted for these consolidation and exchange-rate effects,
SUPPLY CHAIN's revenues rose by nearly 6 percent, or more than EUR 700
million, in 2011. This increase was fueled in particular by strong growth
in the Asia-Pacific region as well as in the Life Sciences&Healthcare and
Automotive sectors. Additional contracts worth EUR 1.3 billion were
concluded last year, an increase of around EUR 200 million versus the
previous year. Combined with additional operating improvements and strict
cost management, increased business activity drove up the division's
earnings in 2011. At EUR 362 million, operating earnings were 56.7 percent
above the previous year's level of EUR 231 million.
- End -
Note to newsrooms: At www.dp-dhl.com, you will find an interview with CEO
Frank Appel as well as background information about the Group's recently
released study of the future titled 'Delivering Tomorrow - Logistics 2050.'
The Annual Earnings Press Conference will be broadcasted live on the
Internet beginning at 10 a.m.
Contact for media queries:
Deutsche Post DHL
Media Relations
Silje Skogstad
Sebastian Steffen
Tel.: +49 (0)228 182-9944
Online: www.dp-dhl.com/en/media_relations.html
Follow the dialogue on future trends on www.delivering-tomorrow.com
Deutsche Post DHL is the world's leading mail and logistics services group.
The Deutsche Post and DHL corporate brands represent a one-of-a-kind
portfolio of logistics (DHL) and communications (Deutsche Post) services.
The Group provides its customers with both easy to use standardized
products as well as innovative and tailored solutions ranging from dialog
marketing to industrial supply chains. About 470,000 employees in more than
220 countries and territories form a global network focused on service,
quality and sustainability. With programs in the areas of climate
protection, disaster relief and education, the Group is committed to social
responsibility. In 2011, Deutsche Post DHL generated revenues of EUR 53
billion.
The postal service for Germany. The logistics company for the world.
For more information: www.dp-dhl.com
Group financial highlights for 2011
ChangeinDivisional revenue for 20111)
in million euros 2010 2011 %
Revenue1) 51,3 52,8 2.8%
88 29
- of which international revenue 34,9 36,0 3.2%
54 86
EBIT2) 1,835 2,436 32.8%
Consolidated net profit3) 2,541 1,163 -54.2%
Consolidated net profit3)
(excluding Postbank 972 1,464 50.6%
valuation effects)
Basic earnings per share (in euros) 2.10 0.96 -54.3%
Basic earnings per share
(in euros, excluding 0.80 1.21 51.3%
Postbank valuation effects)
Share of total Share of total ChangDivisional EBIT for 20111)
in million euros 2010 revenue 2011 revenue ein %
MAIL 13, 27.1% 13, 26.4% 0.4%
913 973
EXPRESS 11, 21.6% 11, 22.3% 5.9%
111 766
GLOBAL FORWARDING, 14, 27.9% 15, 28.5% 4.9%
FREIGHT 341 044
SUPPLY CHAIN 13, 25.4% 13, 25.0% 1.2%
061 223
Corporate Center / Other - n/a - n/a -13.4%
andconsolidation 1,0 1,1
38 77
Group revenue 51, 100% 52, 100% 2.8%
388 829
in million euros 2010 2011 Changein %1) Prior-year amounts adjusted.
MAIL4) 1,120 1,107 -1.2%
DHL5) 1,111 1,718 54.6%
- EXPRESS6) 497 927 86.5%
- GLOBAL FORWARDING, FREIGHT7) 383 429 12.0%
- SUPPLY CHAIN8) 231 362 56.7%
Corporate Center / Other and
consolidation -396 -389 1.8%
Group EBIT2) 1,835 2,436 32.8%
2) Underlying EBIT totaled EUR 2,205 million in the previous year.
3) After non-controlling interests.
4) Underlying EBIT totaled EUR 1,154 million in the previous year.
5) Underlying EBIT totaled EUR 1,447 million in the previous year.
6) Underlying EBIT totaled EUR 785 million in the previous year.
7) Underlying EBIT totaled EUR 390 million in the previous year.
8) Underlying EBIT totaled EUR 272 million in the previous year.
Group financial highlights for the fourth quarter of 2011
4th 4thDivisional revenue in the fourth quarter of 20111)
quarter20 quarter20
Changein
in million euros 10 11 %
Revenue1) 13,835 14,126 2.1%
- of which international revenue 9,324 9,580 2.7%
EBIT2) 525 599 14.1%
Consolidated net profit3) 487 175 -64.1%
Consolidated net profit3)
(excluding 252 369 46.4%
Postbank valuation effects)
Basic earnings per share (in euros) 0.40 0.14 -65.0%
Basic earnings per share
(in euros, 0.21 0.31 47.6%
excluding Postbank valuation effects)
4th Share of 4th Share ofDivisional EBIT in the fourth quarter of 20111)
quarter total quarter total Chang
in million euros 2010 revenue 2011 revenue ein %
MAIL 3,825 27.6% 3,853 27.3% 0.7%
EXPRESS 2,904 21.0% 3,122 22.1% 7.5%
GLOBAL FORWARDING, 3,898 28.2% 3,936 27.9% 1.0%
FREIGHT
SUPPLY CHAIN 3,502 25.3% 3,548 25.1% 1.3%
Corporate Center / -294 n/a. -333 n/a. -13.3%
Other
andconsolidation
Group revenue 13,835 100% 14,126 100% 2.1%
4th 4th Changein1) Prior-year amounts adjusted.
in million euros quarter2010 quarter2011 %
MAIL4) 224 246 9.8%
DHL5) 395 447 13.2%
- EXPRESS6) 218 248 13.8%
- GLOBAL FORWARDING, FREIGHT7) 131 126 -3.8%
- SUPPLY CHAIN8) 46 73 58.7%
Corporate Center / Other -94 -94 0.0%
and
consolidation
Group EBIT2) 525 599 14.1%
2) Underlying EBIT totaled EUR 593 million in the previous year.
3) After non-controlling interests.
4) Underlying EBIT totaled EUR 254 million in the previous year.
5) Underlying EBIT totaled EUR 433 million in the previous year.
6) Underlying EBIT totaled EUR 239 million in the previous year.
7) Underlying EBIT totaled EUR 132 million in the previous year.
8) Underlying EBIT totaled EUR 62 million in the previous year.
End of Corporate News
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Language: English
Company: Deutsche Post AG
Charles-de-Gaulle-Straße 20
53113 Bonn
Germany
Phone: +49 (0)228 182 - 63 100
Fax: +49 (0)228 182 - 63 199
E-mail: ir(at)deutschepost.de
Internet: www.dp-dhl.de
ISIN: DE0005552004
WKN: 555200
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX
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