DGAP-News: Deutsche Post DHL exceeds forecast and proposes increased dividend for 2010
(firmenpresse) - DGAP-News: Deutsche Post AG / Key word(s): Final Results
Deutsche Post DHL exceeds forecast and proposes increased dividend for
2010
10.03.2011 / 07:00
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Deutsche Post DHL exceeds forecast and proposes increased dividend for 2010
- Underlying EBIT of EUR 2.2 billion surpasses upgraded guidance by more
than EUR 100 million
- Group revenues increase to EUR 51.5 billion - double-digit growth at
DHL
- Dividend increase to EUR 0.65 per share proposed
- Group expects operating profit of EUR 2.2 billion to EUR 2.4 billion in
2011
- CEO Frank Appel: 'We are focused on profitable growth.'
Bonn, March 10, 2011: Deutsche Post DHL, the world's leading postal and
logistics group, significantly increased its revenues during the past
financial year and strongly improved its profitability. A slight drop in
revenue in the MAIL division, caused in part by a regulatory change in
value-added tax that took effect in mid-2010, was more than offset by
vigorous top-line growth in all DHL divisions. Overall, Group revenues
climbed by 11.4 percent to EUR 51.5 billion. Thanks to margin improvements
at DHL, the increase of the Group's operating profit was substantially
higher. At EUR 2.2 billion, underlying EBIT was 50 percent higher than the
previous year's level and also exceeded the upper end of the upgraded
guidance for the company's operating earnings by more than EUR 100 million.
Originally, the Group had forecast that underlying EBIT would rise to
between EUR 1.6 billion and EUR 1.9 billion. In combination with positive
effects from the sale of Postbank, the efficiency improvements also
produced a fourfold increase in the company's net profit to EUR 2.5 billion
in financial year 2010.
'Our strong performance in 2010 clearly demonstrates that we positioned
ourselves at an early stage to be fit for the economic upswing and that our
Strategy 2015 is increasingly bearing fruit,' said Frank Appel, Chief
Executive Officer of Deutsche Post DHL. 'This past year was an important
milestone on our way to sustainably increasing the company's earnings
strength.'
Guidance
For the current year, the Group expects the global economy to continue to
recover, a development that will continue to fuel revenue and earnings
growth at the company's DHL divisions. Against this background, Deutsche
Post DHL expects an EBIT of between EUR 2.2 billion and EUR 2.4 billion.
While the MAIL division is expected to contribute between EUR 1.0 billion
and EUR 1.1 billion to this figure, earnings at DHL should increase to
between EUR 1.6 billion and EUR 1.7 billion. Corporate Center/Other
expenditures are forecasted to total around EUR 400 million. Since the
restructuring measures introduced in recent years are now largely
completed, no significant non-recurring items are expected. As previously
announced, the Group will no longer separately report an underlying EBIT
metric. Consolidated net profit, adjusted for effects stemming from the
valuationof the Postbank transaction, should also continue to improve
during 2011 in line with the operating business. The Group also affirmed
that the positive earnings trends will continue in future years - assuming
a further recovery of the global economy. Earnings in the MAIL division are
to be stabilized at around EUR 1 billion despite the expected continuing
drop in letter volumes. At the same time, the operating profit at DHL
should climb by 13 percent to 15 percent on average each year until 2015.
'We are focusing on growth in both revenues and earnings,' Appel said. 'Our
two strong pillars provide an excellent starting point for this. We have
built the foundation to stabilize the profitability of the MAIL division
and have just begun to tap the growth potential of DHL. We will use this
strong basis to further expand our leading market positions and
significantly increase profitability.'
Financial year 2010
During 2010, Deutsche Post DHL profited from the upturn of global economic
activity, boosting revenues by 11.4 percent from EUR 46.2 billion in 2009
to EUR 51.5 billion. In addition to increased transport volumes and higher
freight rates, this growth can be attributed also to new-customer business
in the DHL divisions. Positive currency effects also contributed to the
improvement. The successful efficiency-enhancing measures in all Group
divisions that were introduced over the past two years have, combined with
the revenue growth, led to an increase in underlying EBIT of more than EUR
700 million, from around EUR 1.5 billion in 2009 to EUR 2.2 billion in
2010. With an operating profit of EUR 1.45 billion (2009: EUR 378 million),
for the first time the DHL divisions contributed more to overall earnings
than the MAIL division, which generated an underlying EBIT of EUR 1.15
billion in 2010 (2009: EUR 1.4 billion). As restructuring expenses were
considerably reduced as planned, the rise in reported EBIT was even more
pronounced. In 2010, it reached EUR 1.8 billion, more than EUR 1.6 billion
above the previous year's level of EUR 231 million. In addition to these
operating improvements, positive effects from the sale of Postbank
contributed to a strong increase in the company's consolidated net profit.
In 2009, net profit totaled EUR 644 million. In 2010, it had climbed to
over EUR 2.5 billion. This represents a rise in earnings per share from EUR
0.53 in 2009 to EUR 2.10 in 2010.
Dividend
Based on the strong results for the past year and the positive outlook for
the Group's future performance, the Board of Management and the Supervisory
Board will propose a dividend of EUR 0.65 per share to the Annual General
Meeting scheduled for May 25, 2011. This represents an increase of EUR 0.05
per share from the EUR 0.60 per share that the Group paid its shareholders
last year. Based on the consolidated net profit adjusted for non-recurring
items this dividend proposal reflects a payout ratio of 59 percent. This is
within the range of 40 percent to 60 percent that the Group set as a target
corridor for future dividend payments in its new finance strategy.
Fourth quarter
During the fourth quarter, the Group also generated a strong revenue
increase of 12 percent to EUR 13.9 billion (2009: EUR 12.4 billion). This
increase was mainly due to the robust growth produced by the DHL divisions.
As a result of the economic recovery already evident in the fourth quarter
of 2009, these growth rates returned again to a more normal level in
comparison to the first nine months of the year. Moreover, the MAIL
division also contributed to increased revenue through the strong growth
produced by the parcel business. At the same time, the division's operating
profit declined, despite continuous strict cost management, as a result of
the effect of the new value-added tax, investments in the expansion of its
digital business and one-time bonus payments made to employees. However,
significant gains in the three DHL divisions were able to more than offset
this decrease. Consequently, underlying EBIT for the Group rose by 12.7
percent during the final quarter of the year, from EUR 526 million in 2009
to EUR 593 million in 2010. In addition to the operating improvements, the
marked reduction in restructuring costs, the non-recurrence of the negative
impact last year of the Arcandor insolvency as well as the positive effects
from the Postbank transaction valuation resulted in a rise in consolidated
net profit to EUR 487 million in the final quarter of 2010. This represents
earnings per share of EUR 0.40. In the same quarter of the previous year,
the company had experienced a loss of EUR 283 million, or EUR 0.24 per
share.
Capital expenditure and cash flow
Last year, the Group's capital expenditure totaled EUR 1.3 billion, about
EUR 100 million above the previous year's level of EUR 1.2 billion. The
investments were in areas such as new technologies and products in the MAIL
division that range from state-of-the-art letter-sorting equipment, and new
camera and scanning technology in the parcel centers to the E-Postbrief
introduced in mid-2010 as well as the online-shopping portal 'Mein
Paket.de'. The foundation for future growth in the DHL divisions was also
strengthened by investments in aircraft, hub warehouses and other property,
plant and equipment. For 2011, the Group expects capital expenditure will
rise to up to EUR 1.6 billion, with the largest share flowing into the
expansion and further modernization of the EXPRESS division's global
network as well as investments in property, plant and equipment in the MAIL
division. As a result of the strong rise in operating profit and the
significantly lower level of restructuring expenses, the Group's operating
cash flow rose by 54.9 percent or EUR 683 million in 2010 to EUR 1.9
billion (2009: EUR 1.2 billion). Free cash flow was also impacted by cash
inflows from the sale of money-market funds. It rose by a total of EUR 2.1
billion to EUR 1.9 billion (2009: EUR -213 million). With net liquidity of
EUR 1.4 billion, the Group continued to have a very strong balance sheet
position at the end of 2010. Compared with the end of 2009, this figure
fell by EUR 308 million despite restructuring expenses of nearly EUR 800
million. Compared with the level at the end of the third quarter, the Group
reported a rise in liquidity of more than EUR 450 million.
MAIL division
In 2010, revenues at the MAIL division fell slightly by 0.7 percent to EUR
13.8 billion. Even though at the beginning of the year the division largely
overcame significant drops in volume caused by the economic crisis, the
general trend of electronic media replacing physical letters with continued
throughout 2010. The effects of the new value-added tax resolution
introduced in July, and the price discounts that were offered in response
to the change as well as the loss of the Quelle business also contributed
to the overall drop in revenue. These effects, however, were almost
completely offset by the dynamic momentum generated by the parcel business.
Thanks to rapidly growing Internet retailing, revenues in this segment
climbed by more than 6 percent in 2010. Profitability in the division was
affected in 2010 by higher wages and - especially in the second half of the
year - by the value-added tax effect and expenditures related to the
expansion of the division's digital business. As a result, at EUR 1.15
billion underlying EBIT was 19.0 percent below the previous year's level of
EUR 1.4 billion, but remained within the forecast corridor of EUR 1.1
billion to EUR 1.2 billion.
EXPRESS division
During 2010, the EXPRESS division also profited from the recovery of the
global economy. Thanks to improved service quality and an intense focus on
the international express business it generated strong growth in both
revenues and earnings. Cross-border shipments generated a double-digit
revenue increase and overcompensated the decrease in day-definite domestic
products resulting from the divestiture of the domestic express businesses
in the United Kingdom and France. In all regions - except Europe - revenues
grew at double-digit rates. Following its repositioning, the business in
the United States was particularly dynamic, generating an organic revenue
increase of nearly 25 percent. Overall, revenues in the division totaled
EUR 11.1 billion in 2010, 12 percent above the previous year's level of EUR
9.9 billion. The increased revenue, coupled with the completed
restructuring in the United States, the UK and France as well as efficiency
gains worldwide,produced strong improvements in profitability. Underlying
EBIT increased from EUR 235 million in 2009 to EUR 785 million in 2010.
GLOBAL FORWARDING, FREIGHT division
In the GLOBAL FORWARDING, FREIGHT division, the rise in volume that began
in the second half of 2009 continued in 2010. In both air and ocean
freight, rapidly rising transport volumes, combined with higher freight
rates, generated top-line growth at high double-digit rates. A slowdown of
the growth rates experienced towards the end of 2010 was primarily a result
of the stabilization of freight rates over the course of the year. Overall
revenues in the division totaled EUR 14.3 billion during the past financial
year, a jump of more than EUR 3 billion, or 27.6 percent, compared with the
previous year's level of EUR 11.2 billion. As a result of the strong growth
in demand, shortages of freight capacity occurred for most of 2010. This
resulted in strongly increasing levels for freight rates. During the year,
the division succeeded in passing on the higher rates to its customers,
though with some time lags. As a result, there was a negative impact on
margins until the third quarter. Thanks to the strong growth in revenue and
a continuing intense focus on cost management, profitability rose
significantly: the division was able to increase its underlying operating
profit by 41.8 percent to EUR 390 million during 2010. This compares to an
underlying EBIT of EUR 275 million in 2009.
SUPPLY CHAIN division
The contract logistics business also performed well in 2010, significantly
improving both revenues and earnings. Despite the loss of the Quelle
business and the systematic withdrawal from underperforming contracts, the
division's revenues climbed from EUR 12.2 billion in 2009 to EUR 13.3
billion in 2010. This represents a rise of 9.2 percent and reflects revenue
growth in all sectors and regions. In addition to positive currency
effects, new business wins and increases in existing business activity
fueled the strong growth. In 2010, additional contracts with new and
existing customers worth EUR 1.1 billion were concluded. In the fourth
quarter alone contracts amounting to about EUR 400 million were closed,
strong evidence of the continuing momentum in this division. As a result of
the revenue gains as well as the successful measures to enhance efficiency
that were partly implemented already in the previous year, operating profit
climbed steeply. At EUR 274 million, underlying EBIT in 2010 was more than
EUR 400 million higher than the previous year's level. In 2009, an
operating loss of EUR 132 million was recorded - also as a result of
significant expenditures related to the Arcandor insolvency.
- End -
Note to newsrooms: At www.dp-dhl.de, you will find a copy of the entire
Annual Report, interviews with CEO Frank Appel and CFO Larry Rosen as well
as additional background information. Beginning at 10 a.m., the Annual
Earnings Press Conference of Deutsche Post DHL will be broadcast live on
the Internet at www.dp-dhl.de.
Media Contact:
Deutsche Post DHL
Media Relations
Silje Skogstad
Sebastian Steffen
Tel.: +49 (0)228 182-9944
On the internet: www.dp-dhl.com/press
Follow us: twitter.com/DeutschePostDHL
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 2010, Deutsche Post DHL revenues exceeded EUR 51
billion.
The postal service for Germany. The logistics company for the world.
For more information: www.dp-dhl.de
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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
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX
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Datum: 10.03.2011 - 07:00 Uhr
Sprache: Deutsch
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