DGAP-News: Deutsche Post DHL remains on growth path
(firmenpresse) - DGAP-News: Deutsche Post AG / Key word(s): Quarter Results
Deutsche Post DHL remains on growth path
02.08.2012 / 07:00
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Deutsche Post DHL remains on growth path
- DHL revenues increase in Q2, particularly in Asia; MAIL turnover
slightly improved, fueled by dynamic parcel business
- One-time effects impact EBIT and net profit development in Q2
- Operating profit adjusted for one-time effects up 8 percent
- Group adjusts full-year earnings guidance for 2012 upwards: EBIT of EUR
2.6 billion to EUR 2.7 billion expected
- CEO Frank Appel: 'We continue to perform well'
Bonn, August 2, 2012: The growth trend at Deutsche Post DHL, the world's
leading postal and logistics group, remained firmly in place during the
second quarter of 2012. At EUR 13.7 billion, revenues generated between
April and June rose 7.3 percent above the previous year's level. Supported
by favorable exchange rate effects this increase exceeded the growth rate
produced in the first quarter of the year. The positive development was
largely due to the performance of the DHL divisions which continue to
benefit from their exceptional market position in the rapidly growing
regions of the world - particularly in Asia. In addition, the company's
parcel business generated double-digit growth in volume and revenues,
making a significant contribution to the Group's strong performance. While
the company also made further strides in its drive to improve
profitability, a one-time subsequent VAT payment negatively impacted
earnings in the MAIL division in the second quarter. On the other hand,
overall positive one-time effects at DHL further bolstered the operational
improvements in the Group's logistics division. As a result of these
developments, the company has made an upward adjustment to its earnings
guidance for the current fiscal year and now expects to generate Group EBIT
of between EUR 2.6 billion and EUR 2.7 billion.
'We continue to perform well,' said Frank Appel, the CEO of Deutsche Post
DHL. '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.'
Second quarter of 2012: profitable growth continues
After the company generated revenues of EUR 12.8 billion in the second
quarter of 2011, the Group increased its turnover by nearly EUR 1 billion
to EUR 13.7 billion between April and June 2012. All four divisions
contributed to this gain.
Despite further profitability improvements, Group EBIT fell by 3 percent to
EUR 543 million during the same period (2011: EUR 562 million). The
decrease resulted largely from a subsequent VAT payment, which had a
one-time negative impact on second-quarter earnings totaling EUR 181
million. By contrast, DHL Express recorded positive one-time effects
resulting from the reversal of provisions that the Group set up in 2008 as
part of the restructuring of its business in the United States as well as
from the disposal of company units that were not part of the core business.
Both effects totaled EUR 143 million during the second quarter. Adjusted
for these items and the sale of a subsidiary in the SUPPLY CHAIN division
carried out during the second quarter of 2011, Group EBIT would have risen
by 8 percent between April and June. With an 11 percent year-over-year
improvement, the DHL divisions underscored once again their role as the
company's growth driver. At the same time, the MAIL division also helped
boost the Group's operating profitability thanks to its dynamic parcel
business and its ongoing strict cost management.
The subsequent VAT payment had a negative impact of EUR 115 million on the
Group's financial result, which, as a consequence, declined to minus EUR
242 million in the second quarter of this year (2011: minus EUR 158
million). Overall, this one-time effect had a negative impact of EUR 260
million on the Group's consolidated net profit in the quarter. During this
period, consolidated net profit fell by EUR 77 million to EUR 201 million
(2011: EUR 278 million). As a result, earnings per share decreased to EUR
0.17 (2011: EUR 0.23). Adjusted for the non-operational one-time effects in
both years, consolidated net profit and earnings per share would have
increased in the second quarter.
Capital expenditures and cash flow: foundation of growth strengthened
In the second quarter of 2012, the Group's capital expenditures totaled EUR
374 million, a slight increase from the EUR 371 million invested in the
second quarter of 2011. During the first half of the year, a total of EUR
679 million was invested, an increase of more than EUR 50 million compared
with the EUR 623 million invested in the same period of the previous year.
The DHL divisions were the focal point of these investments. Here, the
foundation for future growth and the company's long-term business success
were bolstered further by investments in a more efficient aircraft fleet,
the continued expansion of the network, state-of-the-art warehouses as well
as a new IT infrastructure in the Global Forwarding business. As is usually
the case during the first half of the year, the Group's operating cash flow
and liquidity position in 2012 were again affected by the pension
contribution that the company makes each January to the pension fund for
the company's civil servants, Bundes-Pensions-Service für Post und
Telekommunikation, (EUR 530 million) and the dividend payment made in May
(EUR 846 million). In addition, the Group's liquidity was also negatively
impacted by the repayment of state aid (EUR 298 million). As a result, the
company had net debt of EUR 978 million at the end of the quarter. The
company's free cash flow decreased from minus EUR 339 million in the first
six months of 2011 to minus EUR 767 million in 2012.
First six months: revenues and earnings growth continues
In the first half of the current fiscal year, the company boosted revenues
by EUR 1.5 billion, or 5.8 percent, from EUR 25.6 billion in the previous
year to EUR 27.1 billion in 2012. Compared with the first half of 2011, the
Group's operating result rose by 3.6 percent to EUR 1.2 billion (2011: EUR
1.2 billion). The one-time effects arising from the subsequent VAT payment,
the reversal of provisions and the income from disposals reflected in the
quarterly results had a similar impact on the half-year figures. In the
first half of the year, consolidated net profit climbed from EUR 603
million in 2011 to EUR 734 million in the ongoing fiscal year. Earnings per
share rose from EUR 0.50 last year to EUR 0.61 in 2012.
Outlook: earnings guidance adjusted
For the second half of the year, the Group continues to expect that the
world economy will grow moderately and that the company - driven by the DHL
divisions - will continue to boost revenues and earnings compared with the
previous year. On the basis of these assumptions and the company's positive
development in the second quarter, the Group has made an upward adjustment
to its earnings guidance for the ongoing fiscal year. It now expects to
generate EBIT of EUR 2.6 billion to EUR 2.7 billion. Previously the company
had anticipated the Group's operating result to be between EUR 2.5 billion
and EUR 2.6 billion. Despite the subsequent VAT payment, earnings in the
MAIL division are still estimated to be between EUR 1.0 billion and EUR 1.1
billion. At the same time, due to the positive one-time effects recorded in
the EXPRESS division in the second quarter, the Group now expects that the
operating result at DHL will climb to about EUR 2 billion, EUR 100 million
more than previously assumed. Corporate Center/Other expenditures are still
forecast to total about EUR 400 million. The Group also continues to assume
that net profit adjusted for non-operational effects will increase in line
with the operating business in 2012. Looking beyond this year, the company
remains optimistic and expects that its positive earnings trends will
continue: the Group forecasts earnings at DHL to rise by an average of 13
percent to 15 percent annually between 2010 and 2015. In the MAIL division,
cost-cutting measures and growth programs are designed to stabilize
profitability at a level of at least EUR 1 billion. Combined with the
planned lowering of costs in Corporate Center/Other, the Group's operating
result should rise to between EUR 3.35 billion and EUR 3.55 billion by
2015.
MAIL division: parcel business remains very dynamic
Although the past quarter had one fewer workday than last year, revenues
generated by the MAIL division in the second quarter of 2012 grew 0.9
percent to EUR 3.3 billion (2011: EUR 3.3 billion). The missing workday was
primarily reflected in the volume and revenues of the traditional letter
mail business, which fell by about 3 percent between April and June 2012.
But the parcel business' continued strong performance more than offset this
decrease. As a result of rapidly growing online retailing, a trend that the
division is doing much to shape by offering innovative products and
delivery services, parcel revenues jumped by more than 12 percent to EUR
797 million from April through June 2012. The parcel business now generates
one-fourth of total revenues in the MAIL division. The successful
development of the company's parcel unit, in combination with strict cost
management, has contributed to the desired stabilization of profitability
in the division. The sole reason that the MAIL division's EBIT decreased to
EUR 38 million during the past quarter (2011: EUR 186 million) was the
subsequent VAT payment. Excluding this negative one-time effect of EUR 151
million, the operating result in the MAIL division would have risen by 2
percent.
EXPRESS division: international express business still strong
In the second quarter of 2012, the EXPRESS division - in-line with the
company's expectation - continued to grow revenues and earnings and further
expanded its worldwide market share. Revenues rose by 10.7 percent between
April and June 2012 to EUR 3.2 billion over the previous year's level of
EUR 2.9 billion. In the process, double-digit revenue improvements were
produced in all regions - except Europe. This positive performance reflects
the exceptional market position achieved by DHL in the world's dynamic
growth markets. Revenues and volume rose particularly fast in Asia and the
Americas region, where the continuing strong business in the United States
played a major role in the good performance. In addition to the operating
improvements, one-time effects related to the reversal of restructuring
provisions and the sale of the domestic express business in Australia and
New Zealand totaling EUR 143 million provided significant momentum to the
rise in profitability. By contrast, the subsequent VAT payment had a
one-time negative effect of EUR 30 million on the profitability of the
EXPRESS division in the second quarter. Overall, the division's EBIT in the
second quarter jumped by more than 50 percent to EUR 367 million (2011: EUR
242 million). Adjusted for all one-time effects, the division's EBIT would
have risen by 5 percent in the past quarter.
GLOBAL FORWARDING, FREIGHT division: gross margin further improved
In the GLOBAL FORWARDING, FREIGHT division, revenues climbed by 5.7 percent
to EUR 4 billion in the second quarter of 2012 amid challenging business
conditions. In the same quarter last year, the division had produced
revenues of EUR 3.8 billion. This performance was primarily driven by
currency effects. Atthe same time, the division benefited from improved
purchasing conditions in the air freight sector. Combined with its own
efficiency gains and its selective growth strategy, the division's gross
margin continued to rise. As a result, its operating result jumped by 19.1
percent, from EUR 115 million in the second quarter of 2011 to EUR 137
million between April and June of the current fiscal year.
SUPPLY CHAIN division: successful new-customer business
Revenues in the SUPPLY CHAIN division rose strongly in the second quarter.
At EUR 3.5 billion, revenues were 12.5 percent above the previous year's
total of EUR 3.1 billion. This growth was fueled in particular by strong
gains in the Asia Pacific region as well as in the 'Automotive' and 'Life
Sciences&Healthcare' sectors. The division's strong performance was also
highlighted by newly concluded contracts with new and existing customers
totaling EUR 330 million and the improved profit margins of these
agreements. Despite gains in profitability, which were primarily the result
of optimized contract management, continuing strict cost controls and
increased operational efficiency, second-quarter EBIT fell by EUR 10
million to EUR 101 million (2011: EUR 111 million). However, the
quarter-on-quarter comparison is distorted by a EUR 23 million net gain on
the disposal of a U.S. subsidiary that was not part of the core business
and was included in last year's operating result. Adjusted for this gain,
the division's second-quarter EBIT would have actually risen by 15 percent.
- End -
Note to newsrooms: At www.dp-dhl.com, you will find an interview with the
Group's CFO Larry Rosen. The investor telephone conference of Deutsche Post
DHL will be broadcast live online beginning at 2 p.m.
Contact for media queries:
Deutsche Post DHL
Media Relations
Sebastian Steffen
Tel.: +49 (0)228 182-9944
Online: www.dp-dhl.com/press
Follow us at 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 revenues exceeded EUR 53
billion.
The postal service for Germany. The logistics company for the world.
For more information at www.dp-dhl.com
Group financial highlights in the second quarter of 2012
2nd 2nd ChangeinDivisional revenue in the second quarter of 20121)
in million euros quarter2011 quarter2012 %
Revenues1) 12,803 13,732 7.3%
- of which international 8,842 9,731 10.1%
revenues
Profit from operating activities 562 543 -3.4%
(EBIT)
Consolidated net profit2) 278 201 -27.7%
Basic earnings per share (in 0.23 0.17 -26.1%
euros)
Diluted earnings per share (in 0.23 0.17 -26.1%
euros)
2nd Share of 2nd Share of ChanDivisional EBIT in the second quarter of 20121)
quarter total quarter total gein
in million euros 2011 revenues 2012 revenues %
MAIL 3,259 25.5% 3,288 23.9% 0.9%
EXPRESS 2,931 22.9% 3,244 23.6% 10.7%
GLOBAL FORWARDING, 3,758 29.4% 3,973 28.9% 5.7%
FREIGHT
SUPPLY CHAIN 3,136 24.5% 3,528 25.7% 12.5%
Corporate Center / -281 n/a -301 n/a -7.1%
Other
andConsolidation
Group revenue 12,803 100% 13,732 100% 7.3%
2nd 2nd Changein1) Prior-year amounts adjusted.
in million euros quarter2011 quarter2012 %
MAIL 186 38 -79.6%
DHL 468 605 29.3%
- EXPRESS 242 367 51.7%
- GLOBAL FORWARDING, FREIGHT 115 137 19.1%
- SUPPLY CHAIN 111 101 -9.0%
Corporate Center / Other -92 -100 -8.7%
and
Consolidation
Group EBIT 562 543 -3.4%
2) After non-controlling interests.
Group financial highlights in the first half of 2012
1st half 1st half of ChangeinDivisional revenues in the first half of 20121)
in million euros of2011 2012 %
Revenues1) 25,610 27,096 5.8%
- of which international 17,447 18,834 7.9%
revenues
Profit from operating activities 1,191 1,234 3.6%
(EBIT)
Consolidated net profit2) 603 734 21.7%
Basic earnings per share (in 0.50 0.61 22.0%
euros)
Diluted earnings per share (in 0.50 0.61 22.0%
euros)
1st Share of Share of ChanDivisional EBIT in the first half of 20121)
halfof total 1st half total gein
in million euros 2011 revenues of 2012 revenues %
MAIL 6,779 26.5% 6,845 25.3% 1.0%
EXPRESS 5,681 22.2% 6,264 23.1% 10.3%
GLOBAL FORWARDING, 7,357 28.7% 7,659 28.3% 4.1%
FREIGHT
SUPPLY CHAIN 6,352 24.8% 6,937 25.6% 9.2%
Corporate Center / -559 n/a -609 n/a -8.9%
Other
andConsolidation
Group revenue 25,610 100% 27,096 100% 5.8%
1st half of 1st halfof Change in1) Prior-year amounts adjusted.
in million euros 2011 2012 %
MAIL 559 431 -22.9%
DHL 831 1,014 22.0%
- EXPRESS 456 598 31.1%
- GLOBAL FORWARDING, FREIGHT 186 224 20.4%
- SUPPLY CHAIN 189 192 1,6%
Corporate Center / Other -199 -211 -6.0%
and
Consolidation
Group EBIT 1,191 1,234 3.6%
2) After non-controlling interests.
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
Indices: DAX
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX
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