DGAP-News: Deutsche Post DHL remains on growth track - earnings guidance for 2012 fulfilled
(firmenpresse) - DGAP-News: Deutsche Post AG / Key word(s): Final Results
Deutsche Post DHL remains on growth track - earnings guidance for 2012
fulfilled
05.03.2013 / 07:00
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Deutsche Post DHL remains on growth track - earnings guidance for 2012
fulfilled
- Group generates operating earnings of EUR 2.67 billion
- All divisions with double-digit earnings growth in Q4
- Company proposes a dividend of EUR 0.70 per share
- Further earnings growth expected in 2013
- CEO Frank Appel: 'We are delivering on our promises'
Bonn, March 5, 2013: Deutsche Post DHL, the world's leading postal and
logistics group, is looking back on a successful 2012. Group revenues
increased 5.1 percent to EUR 55.5 billion during the 12-month period. This
increase mainly reflects the exceptional market position that DHL maintains
in the world's growth regions - especially in Asia. The company, which
operates in more than 220 countries and territories in the world, is now
generating about 70 percent of its revenues outside Germany. At the same
time, with its highly successful parcel business, the Group's MAIL division
continues to benefit from the rapid growth of online retailing. The
excellent position that the Group and its divisions maintain in the most
dynamic markets also led to a strong rise in the company's profitability
last year. At EUR 2.67 billion, operating earnings finished the year within
the announced target corridor of EUR 2.6 billion to EUR 2.7 billion and
were more than 9 percent above the previous year's level. The Group's
consolidated net profit climbed by about EUR 500 million to EUR 1.66
billion in 2012.
'With our strong performance in 2012, we have reached another milestone in
our Strategy 2015,' said Frank Appel, CEO of Deutsche Post DHL. 'In the
past year, we made major progress on a journey that was, at times, far from
easy. And we delivered on our promises - for the benefit of our customers,
employees and shareholders.'
Guidance
For 2013, the Group expects the world's economy to generate moderate
growth. The pace of this growth should accelerate as the year progresses.
As a result, the company forecasts a corresponding trend of increasing
revenues, particularly in the DHL divisions. At the same time, the Group's
EBIT is projected to increase to between EUR 2.7 billion and EUR 2.95
billion. While the MAIL division is expected to contribute between EUR 1.1
billion and EUR 1.2 billion to this figure, DHL should generate operating
earnings between EUR 2.0 billion and EUR 2.15 billion. Corporate
Center/Other expenditures are forecast to again total about EUR 400
million. The Group's consolidated net profit is projected to grow in line
with the operating business in 2013. In addition, the company expects to
further increase cash generation and, as a result, to generate sufficient
free cash flow to at least cover this year's dividend payment for 2012.
Looking beyond the current year, the company remains optimistic and expects
the positive earnings trend to continue: at DHL, the Group expects that
earnings will rise by an annual average of between 13 percent and 15
percent between 2010 and 2015. The profitability of the MAIL division
should stabilize at a level of at least EUR 1 billion thanks to
cost-cutting measures and growth programs that have been introduced. In
combination with the planned reduction of expenditures for Corporate
Center/Other, the Group expects operating earnings to increase to between
EUR 3.35 billion and EUR 3.55 billion by 2015.
'The past three years have demonstrated that our Strategy 2015 is paying
off,' CEO Appel said. 'With our unique portfolio of products and services
and our excellent position in the world's growth markets - the emerging
markets and online retailing - we have an exceptional base for generating
further profitable growth. And we will build on these strengths and lead
the Group - step by step - to its next milestones.'
Fiscal year 2012
In 2012, Deutsche Post DHL increased - partly due to favorable
exchange-rate effects - its revenues by EUR 2.7 billion to EUR 55.5 billion
(2011: EUR 52.8 billion). Thanks to the improved revenues and increased
profitability, the company boosted its operating earnings by more than EUR
200 million to EUR 2.67 billion (2011: EUR 2.44 billion). By generating
earnings of more than EUR 2 billion, reflecting a year-over-year increase
of 19 percent, the DHL divisions are continuing to be the driving force of
the Group's EBIT growth. With all three divisions having produced
double-digit earnings gains the DHL pillar contributed the majority to the
Group's profit. The operating earnings produced by the MAIL division during
fiscal year 2012 were EUR 56 million below their level in the previous
year. The main reason for the decline was a subsequent VAT payment that had
a one-time negative impact of EUR 151 million on the division's earnings in
the second quarter. The subsequent VAT payment also had a negative impact
of EUR 115 million on the Group's financial result. However, due to the
positive effects from the completion of the Postbank transaction, the
financial result improved substantially to minus EUR 427 million (2011:
minus EUR 777 million). Combined with the operating improvements, the
Group's consolidated net profit jumped by 42.6 percent to EUR 1.66 billion
during the past fiscal year (2011: EUR 1.16 billion), and basic earnings
per share rose from EUR 0.96 in 2011 to EUR 1.37 in 2012.
Dividend
Given the positive results of the past fiscal year, the Supervisory Board
and the Board of Management will propose a dividend of EUR 0.70 per share
to the Annual General Meeting on May 29, as in the previous year. Based on
the consolidated net profit adjusted for non-recurring items, this year's
dividend proposal represents a payout ratio of 53 percent. As a result, the
Group's dividend proposal is once again within 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 2012
In the final quarter of the past fiscal year, the company continued on the
growth path of previous quarters. Revenues climbed by more than EUR 450
million, or 3.2 percent, to EUR 14.6 billion (2011: EUR 14.1 billion). The
Group's operating earnings climbed by 38.1 percent to EUR 827 million
(2011: EUR 599 million). As a result, the fourth quarter was by far the
most profitable one for the Group during the past year. It was also the
company's strongest fourth quarter since 2007. All DHL divisions
contributed to these gains as each division produced double-digit growth in
earnings. The MAIL division profited from the structural and seasonal
strengths of the parcel business as well as a positive base effect related
to expenses in the course of the collective-bargaining agreement concluded
in December 2011. As a result, the MAIL EBIT increased by more than 50
percent in the fourth quarter. Thanks to these strong gains in
profitability in both of the Group's two pillars, the company's
consolidated net profit more than tripled in the fourth quarter. At EUR 542
million, net earnings were EUR 367 million higher than the previous year's
level of EUR 175 million. Basic earnings per share rose from EUR 0.14 in
the previous year to EUR 0.45 for the period between October and December
2012, a reflection of both the previously mentioned operating improvements
and a sharp improvement in the financial result. The latter was largely due
to negative valuation effects related to the Postbank transaction included
in last year's figures.
Capital expenditures
The Group further enhanced both its growth potential and efficiency by
investing a total amount of EUR 1.7 billion in the past year (2011: EUR 1.7
billion). This figure includes capital expenditures for the expansion of
the MAIL division's parcel infrastructure, which is designed to support the
above-average growth in the parcel business in years to come. However, the
largest share of the Group's investment sum went into the company's DHL
divisions. Among other areas, these expenditures were used for a more
efficient aircraft fleet, the ongoing expansion of the divisions' networks,
state-of-the-art warehouses and a new IT infrastructure for Global
Forwarding.
Cash flow
Despite the strong improvement in operating earnings, the Group reported a
cash outflow from operating activities of EUR 203 million in the past year.
In 2011, the company generated a positive operating cash flow of EUR 2.4
billion. The main reason for this development was the further funding of
pension obligations in the amount of around EUR 2 billion in the fourth
quarter. This development was also reflected in the company's free cash
flow, which fell to minus EUR 1.9 billion in 2012 (2011: EUR 749 million).
Excluding one-time effects in the amount of EUR 2.6 billion, which also
included the VAT payment (EUR 482 million) and restructuring expenses (EUR
140 million), the company's free cash flow would have been close to the
previous year's level. These one-time effects were, in combination with the
repayment of state aid (EUR 298 million), also the driving force in the
development of the company's net debt position, which, as a result, stood
at about EUR 2 billion at the end of December 2012 (2011: net liquidity of
EUR 938 million).
MAIL division
At EUR 14.0 billion, revenues generated by the MAIL division in 2012
remained at the previous year's level, although 2012 had three fewer
working days than 2011 and the volume of the traditional mail business
continued its gradual decline, as expected. The division continued to
benefit from the strong momentum being generated by its parcel business.
Propelled by expanding online retailing and own innovative services - which
extend from practical shopping portals to an array of delivery options -
revenues in the parcel business climbed sharply. Driven by double-digit
volume growth with business customers, revenues in this business unit
increased by 9 percent to EUR 3.5 billion. As a result, the booming parcel
business generates one-fourth of the MAIL division's total revenues and
contributed to the stabilization of the division's profitability: At EUR
1.05 billion, operating earnings did indeed decrease by more than EUR 50
million in 2012 compared to the previous year (2011: EUR 1.11 billion).
This decline, however, solely resulted from the VAT payment. Excluding this
one-time effect of EUR 151 million, operating earnings in the MAIL division
would have climbed, despite the loss of working days, the expenses related
to the Neckermann bankruptcy and the increased staff costs arising from the
collective-bargaining agreement.
EXPRESS division
In 2012, the EXPRESS division profited from its strong market position in
the dynamic growth regions of the world, continued its successful revenue
and earnings performance and further expanded its worldwide market share.
Revenues generated in the past fiscal year rose by more than EUR 1 billion,
or 9.3 percent, to EUR 12.8 billion (2011: EUR 11.7 billion). In addition
to positive currency effects, the strong growth produced by international
time-definite shipments was once again the main reason for the steep rise
in revenues. During the period, double-digit growth in revenues was
generated in all regions - with the exception of Europe, where revenues
climbed significantly as well. Revenues and volumes rose particularly
strongly in Asia and the Americas region, where, in particular,good
business performance in the United States was a key reason for this
positive development. In addition to the operating improvements, one-time
effects - the EXPRESS share of the VAT payment, which totaled EUR 30
million, was offset by the reversal of restructuring provisions (EUR 99
million) and income from the sale of the domestic express business in
Australia and New Zealand (EUR 44 million) - contributed a total of EUR 113
million to the rise of the division's earnings. Altogether, the division's
EBIT increased by 21 percent to EUR 1.11 billion during the past year
(2011: EUR 916 million).
GLOBAL FORWARDING, FREIGHT division
In a challenging market environment, GLOBAL FORWARDING, FREIGHT boosted
revenues by more than EUR 500 million, or 3.6 percent, to EUR 15.7 billion
during 2012 (2011: EUR 15.1 billion), primarily due to positive currency
effects. While volume and revenues fell in air freight during 2012, sales
in ocean freight and overland transport increased. Thanks to the selective
growth strategy and, in part, to improved buying conditions, gross margins
were increased once again in all three business segments. In combination
with further efficiency gains, the division sharply boosted its operating
earnings by 16.4 percent despite the costs associated with the introduction
of the new IT infrastructure. The division's EBIT climbed from EUR 440
million in 2011 to EUR 512 million in 2012.
SUPPLY CHAIN division
SUPPLY CHAIN also generated profitable growth in 2012. Revenues and
earnings finished the year well above the previous year's level. The
division's revenues climbed by 8.4 percent to EUR 14.3 billion (2011: EUR
13.2 billion). In addition to positive currency effects, organic growth in
the Automotive and Life Sciences&Healthcare sectors acted as the
division's main growth drivers. The division's strong performance is also
reflected in the continuing high volume of EUR 1.2 billion in new contracts
concluded with new and existing customers, the improved profit margins in
these contracts and the consistently high contract renewal rate. In
combination with strict, ongoing cost controls, the world market leader in
contract logistics also steeply boosted earnings: At EUR 416 million,
operating earnings jumped by 14.9 percent, or more than EUR 50 million,
above the previous year's total of EUR 362 million.
- End -
Note to newsrooms: At www.dp-dhl.com, you will find an interview with CEO
Frank Appel and background information about DHL's activities in the
technology sector. The Group's press conference will be broadcast live
online beginning at 10 a.m.
Group financial highlights for 2012
in million euros 2011 2012 Changein %Divisional revenues for 20121)
Revenues 52,829 55,512 5.1%
- of which international revenues 36,086 38,687 7.2%
Profit from operating activities (EBIT) 2,436 2,665 9.4%
Consolidated net profit2) 1,163 1,658 42.6%
Basic earnings per share (in euros) 0.96 1.37 42.7%
Diluted earnings per share (in euros) 0.96 1.32 37.5%
Share of Share ofDivisional EBIT for 20121)
total total Changein
in million euros 2011 revenues 2012 revenues %
MAIL 13,973 26.4% 13,972 25.2% 0.0%
EXPRESS 11,691 22.1% 12,778 23.0% 9.3%
GLOBAL 15,118 28.6% 15,666 28.2% 3.6%
FORWARDING,
FREIGHT
SUPPLY CHAIN 13,223 25.0% 14,340 25.8% 8.4%
Corporate Center/ -1,176 n/a -1,244 n/a -5.8%
Otherandconsolidation
Group revenues 52,829 100% 55,512 100% 5.1%
in million euros 2011 2012 Changein %1) Prior-year amounts adjusted.
MAIL 1,107 1,051 -5.1%
DHL 1,718 2,036 18.5%
- EXPRESS 916 1,108 21.0%
- GLOBAL FORWARDING, FREIGHT 440 512 16.4%
- SUPPLY CHAIN 362 416 14.9%
Corporate Center/Other and -389 -422 -8.5%
consolidation
Group EBIT 2,436 2,665 9.4%
2) After non-controlling interests.
Group financial highlights for the fourth quarter of 2012
Fourth quarter Fourth quarter ChangeinDivisional revenues for the fourth quarter of 20121)
in million euros of2011 of 2012 %
Revenues 14,126 14,577 3.2%
- of which international 9,580 10,048 4.9%
revenues
Profit from operating 599 827 38.1%
activities (EBIT)
Consolidated net profit2) 175 542>100%
Basic earnings per share (in 0.14 0.45>100%
euros)
Diluted earnings per share (in 0.14 0.40>100%
euros)
Fourth Share of Fourth Share ofDivisional EBIT for the fourth quarter of 20121)
quarter of total quarter of total Changein
in million euros 2011 revenues 2012 revenues %
MAIL 3,853 27.3% 3,851 26.4% -0.1%
EXPRESS 3,100 21.9% 3,342 22.9% 7.8%
GLOBAL 3.957 28.0% 3,989 27.4% 0.8%
FORWARDING,
FREIGHT
SUPPLY CHAIN 3,548 25.1% 3,733 25.6% 5.2%
Corporate Center/ -332 n/a -338 n/a -1.8%
Other
andconsolidation
Group revenues 14,126 100% 14,577 100% 3.2%
Fourth quarter Fourth quarter Changein1) Prior-year amounts adjusted.
in million euros of 2011 of 2012 %
MAIL 246 373 51.6%
DHL 447 560 25.3%
- EXPRESS 244 279 14.3%
- GLOBAL FORWARDING, FREIGHT 130 166 27.7%
- SUPPLY CHAIN 73 115 57.5%
Corporate Center/Other -94 -106 -12.8%
andconsolidation
Group EBIT 599 827 38.1%
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
End of News DGAP News-Service
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