DGAP-News: Deutsche Post DHL with a strong start in 2010
(firmenpresse) - Deutsche Post AG / Quarter Results
11.05.2010 07:00
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Deutsche Post DHL with a strong start in 2010
* Underlying EBIT up 81.4 percent to EUR 566 million in the first quarter;
Group's consolidated net profit at EUR 1.7 billion
* Consolidated revenue rises 4.4 percent to EUR 12.0 billion - substantial
growth at DHL; largely stable MAIL revenues
* Guidance for fiscal year confirmed; underlying EBIT expected to finish
the year at the upper end of the forecast range of EUR 1.6 billion to EUR
1.9 billion
* CEO Frank Appel: 'We have broadly improved our performance.'
Bonn, May 11, 2010: The world's leading postal and logistics group,
Deutsche Post DHL, concluded the first quarter of fiscal year 2010 with an
increase in revenues and a strong rise in earnings. Buoyed by the
continuing recovery of the world economy and rising transport volumes,
consolidated revenue climbed 4.4 percent to EUR 12.0 billion compared with
the same period last year. These solid results were fueled by substantial
growth in DHL, a development that was also driven by increasing business
with important new customers. Bolstered by the successful efficiency
measures initiated last year, the Group's underlying EBIT improved by 81.4
percent to EUR 566 million. Efficiency gains also played a major role in
the Group's consolidated net profit, enabling Deutsche Post DHL to
significantly improve its profitability: The net profit totaled EUR 1.7
billion in the first quarter of 2010, compared with EUR 944 million in the
same period last year. Both figures include significant positive effects
from the first-time mark-to-market valuation of financial instruments
related to the Postbank sale.
'Our first quarter results demonstrate clearly that we are well prepared
for the future: we have broadly improved our performance,' said Frank
Appel, the CEO of Deutsche Post DHL. 'But there is much more to accomplish.
We will continue to press forward with the implementation of our Strategy
2015 and unlock the Group's full potential step by step.'
First quarter 2010
Reported EBIT climbed from EUR 27 million in the first three months of 2009
to EUR 512 million in 2010. In addition to operating gains, this
performance reflected the expected significant reduction in non-recurring
expenses. The Group's net financial income more than doubled during the
first quarter, jumping from EUR 618 million in the same period last year to
EUR 1.3 billion. This includes positive effects of around EUR 1.4 billion
from the first-time mark-to-market valuation of financial instruments
related to the Postbank sale. In the previous year, income from the
valuation of derivatives related to the Postbank sale totalled EUR 737
million. The consolidated net profit after minorities climbed 85.1 percent
to EUR 1.7 billion. This amounts to an improvement in earnings per share to
EUR 1.44 (2009: EUR 0.78).
Capital expenditure and cash flow
The Group's capital expenditures totalled EUR 195 million in the first
quarter of 2010, 19.1 percent below the previous year's level. The Board of
Management remains committed to the slight increase in capital expenditure
to EUR 1.4 billion as planned for the entire year. During the first
quarter, operating cash flow is regularly impacted by the annual payment
made to the Bundes-Pensions-Service für Post und Telekommunikation, a
special pension fund for the company's civil servants, that is paid
annually in January of each year. This payment resulted in a net cash
outflow of EUR 556 million during the first quarter. Total net cash used in
operating activities fell considerably to EUR 95 million (2009: minus EUR
275 million). Free cash flow increased by EUR 1.1 billion compared to the
previous year totalling minus 290 million EUR in the first quarter of 2010.
In addition to the improved operational performance, this development
mainly reflects the investment of cash proceeds from the Postbank
transaction in various financial instruments during the first quarter of
2009. Net liquidity fell slightly to EUR 1.4 billion compared to the 2009
year-end level of EUR 1.7 billion.
'Our financial position is very solid - and we expect it to remain so in
the future,' CFO Larry Rosen declared. 'This will be a result of our
underlying business performance and the financial strategy we adopted in
March 2010. This strategy will continue to play a critical role in
safeguarding financial stability and flexibility as well as securing low
capital costs for the Group.'
Guidance: Full-year EBIT projection confirmed
For full-year 2010, the Group expects a continued recovery in global
transport volumes. Deutsche Post DHL confirmed its guidance of underlying
EBIT between EUR 1.6 billion and EUR 1.9 billion. Driven by the overall
solid performance in the first quarter, the Board of Management assumes
that the result for the full year will be at the upper end of this range.
It is believed today that the DHL division and the MAIL division will
contribute roughly the same amount to earnings for the first time. While
earnings at the MAIL division are expected to total between EUR 1.0 billion
and EUR 1.2 billion, the projected amount for DHL is between EUR 1.0
billion and EUR 1.1 billion. Consolidated net profit is expected to
continue to improve in 2010 in line with the Group's operating business.
Furthermore, the company anticipates that the positive net earnings trend
will sustain in 2011.
'The encouraging start to the new year confirms our fundamental optimism
about 2010,' Rosen said. 'In the future, our goal is to achieve a stable
result in the MAIL division and for DHL to become the driving force of
growth in consolidated net profit. Even though we continue to face
economic, political and regulatory uncertainties, we are increasingly
optimistic about the future.'
MAIL division: Revenues better than expected
In the first three months of 2010, revenue in the MAIL division totalled
EUR 3.4 billion, nearly the same level as the previous year (2009: EUR 3.5
billion).While the phase of crisis-related reductions seems to be largely
over, the trend towards the increased substitution of physical letters with
electronic media in the traditional mail business remained unchanged at the
beginning of 2010. By contrast, the PARCEL Germany business unit performed
dynamically, with powerful growth in internet retail propelling revenue
well above the previous year's total. At EUR 390 million, the division's
underlying EBIT for the first quarter finished 4.2 percent below the
previous year's level of EUR 407 million. As a result of strict cost
discipline, the slight reduction in revenue as well as wage increases could
be largely offset.
EXPRESS division: Increasing momentum
In the first quarter, the EXPRESS division performed particularly well.
Revenue in the first three months of 2010 jumped by 9.0 percent to EUR 2.6
billion (2009: EUR 2.4 billion). The mainreasons for this growth were the
marked increase in daily shipping volume - particularly time-definite
international shipments - and higher fuel-surcharge revenues. The EXPRESS
business in the Americas and Asia-Pacific regions was particularly strong.
Adjusted for exchange-rate effects, organic growth of 16.1 percent and 19.3
percent respectively was generated in these regions. The division's EBIT
also improved strongly duringthe reporting period. For the same period in
the previous year, a loss before non-recurring items of EUR 120 million was
incurred. During the first three months of 2010, an underlying profit of
EUR 154 million was generated. In addition to the positive momentum
resulting from the economic recovery, the completion of the restructuring
program in the United States as well as significant cost reductions
worldwide contributed to the result.
GLOBAL FORWARDING, FREIGHT division: Strong growth
In the GLOBAL FORWARDING, FREIGHT division, the increase in volumes seen
since the second half of 2009 accelerated in the first quarter of 2010.
Volumes for both air and ocean freight rose sharply during the first three
months compared with the previous year's level. This is the result of DHL
attracting important new customers in addition to the economic upswing. As
a result, the division boosted its first quarter revenues to EUR 3.1
billion, a 13.5 percent increase from the total of EUR 2.7 billion
generated in the same period in 2009. Because demand is rapidly rising
following the economic crisis, transport rates for air and ocean freight
capacities have risen considerably. DHL did indeed secure additional
capacities at an early stage. But the higher prices could not be completely
passed on to customers. However, as a result of the division's successful
push to cut operating and indirect costs through intensive cost management,
underlying EBIT rose by 8.0 percent from EUR 50 million in 2009 to EUR 54
million in the first quarter of 2010.
SUPPLY CHAIN division: Significantly improved performance
Revenue in the SUPPLY CHAIN division declined slightly during the first
quarter of 2010. At EUR 3.1 billion, it was 0.5 percent below the level
from the same quarter in 2009. This drop largely resulted from the loss of
business caused by the bankruptcy of the Arcandor Group in Germany and an
underperforming contract in the United States that was not renewed in the
second quarter of 2009. But in most regions and sectors, revenue trends
were positive. New business wins and trading upturns generated strong
growth particularly in the Asia-Pacific region. During the first quarter of
2010, additional contracts with new and existing customers that totaled
about EUR 240 million were concluded. Thanks to improvements in margins
produced by successful cost cutting, underlying EBIT jumped by 52.4 percent
to EUR 64 million (2009: 42 million euro).
- End -
Note to newsrooms: You will find an interview with CFO Larry Rosen and
other background information at www.dp-dhl.de. The investor conference call
will be transmitted on the Internet beginning at 2 p.m.
Deutsche Post DHL is the world's leading mail and logistics services group.
The Deutsche Post and DHL corporate brands offer a one-of-a-kind portfolio
of logistics (DHL) and communication (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 500,000 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 2009, Deutsche Post DHL revenues exceeded EUR 46
billion.
The postal service for Germany. The logistics company for the world.
Deutsche Post DHL
Corporate Communications - Global Media Relations
Sebastian Steffen
Tel.: +49 (0)228 182-9944
E-mail: pressestelle(at)deutschepost.de
11.05.2010 07:00 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Deutsche Post AG
Charles-de-Gaulle-Straße 20
53113 Bonn
Deutschland
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, Frankfurt (Prime Standard),
Düsseldorf, Hannover, München, Hamburg, Stuttgart;
Terminbörse EUREX
End of News DGAP News-Service
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Datum: 11.05.2010 - 07:00 Uhr
Sprache: Deutsch
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