DGAP-News: Deutsche Post DHL boosts revenues and profitability in the first quarter of 2011
(firmenpresse) - DGAP-News: Deutsche Post AG / Key word(s): Quarter Results
Deutsche Post DHL boosts revenues and profitability in the first
quarter of 2011
10.05.2011 / 07:00
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Deutsche Post DHL boosts revenues and profitability in the first quarter of
2011
- Group revenues climb by 6.9 percent to EUR 12.8 billion - strong growth
at DHL, revenue at MAIL stable thanks to dynamic parcel business
- First-quarter EBIT jumps by 22.9 percent to EUR 629 million,
consolidated net profit totals EUR 325 million
- Full year guidance confirmed: EBIT expected to total between EUR 2.2
billion and EUR 2.4 billion
- CEO Frank Appel: 'We have gotten off to a dynamic start in 2011'
Bonn, May 10, 2011: Deutsche Post DHL, the world's leading postal and
logistics group, remained firmly on its growth course in the first quarter
of 2011. Compared with the previous year's results, Group revenues
increased by 6.9 percent to EUR 12.8 billion during the first three months
of 2011. This positive performance was driven by the strong growth
generated in all three DHL divisions. Supported by the continued economic
recovery and rising transport volumes the DHL businesses profited
especially from their excellent market position in the world's fast growing
regions in general and Asia in particular. Further margin improvements in
the DHL divisions also resulted in a strong rise in the Group's
profitability: in the first quarter, the company's EBIT increased by 22.9
percent to EUR 629 million. Deutsche Post DHL's consolidated net profit
reached EUR 325 million during the past quarter. Excluding the valuation
effects related to the sale of Postbank this represents an increase of more
than 27 percent compared with the same period last year and reflects the
sustainable efficiency improvements achieved by the Group in recent years.
'We have gotten off to a dynamic and very successful start in 2011,' said
Frank Appel, the Chief Executive Officer of Deutsche Post DHL. 'The first
quarter clearly demonstrated that our growth is based on a broad and very
strong foundation. As a result, we are in an ideal position to benefit
significantly from the continuing momentum in global markets and to reveal
step by step our Group's full potential - for the good of our customers,
employees and investors.'
First quarter of 2011: revenue and profitability improved
After the company had generated revenues of EUR 12.0 billion in the first
three months of 2010, the Group increased its turnover by more than EUR 800
million during the first quarter of 2011, reaching a level of EUR 12.8
billion this year. First-quarter EBIT rose more than EUR 100 million or
22.9 percent from EUR 512 million last year to EUR 629 million this year.
The DHL divisions contributed EUR 363 million to the overall Group result,
representing an increase of almost two-thirds compared with the prior year
(2010: EUR 219 million). In addition to operational improvements achieved
by the company, the absence of any restructuring expenses, which totaled
EUR 54 million last year, also had a positive impact on the development of
Deutsche Post DHL's operating result. The Group's net financial income fell
in the first quarter, dropping from EUR 1.3 billion in 2010 to minus EUR
161 million in 2011. This development, however, was almost exclusively the
result of the valuation of financial instruments related to the sale of
Postbank: While last year's financial result included positive effects of
EUR 1.4 billion related to the Postbank transaction, expenses amounting to
EUR 56 million were incurred in the first quarter of 2011. This
extraordinary accounting effect had an accordingly significant impact on
the Group's consolidated net profit: During the first three months of the
year, consolidated net profit fell from EUR 1.7 billion in the previous
year to EUR 325 million in 2011. This equals a decrease in earnings per
share to EUR 0.27 (2010: EUR 1.44). However, adjusted for the Postbank
valuation effects for both years, consolidated net profit and earnings per
share would have risen by over 27 percent in the first quarter of 2011,
driven by the operational improvements achieved.
Investment and cash flow: foundation for growth further strengthened
The Group's capital expenditure totaled EUR 252 million in the first
quarter, representing an increase of nearly 30 percent versus the previous
year's level of EUR 195 million. The focal point of the increase were the
three DHL divisions. Here, the basis for future profitable growth was
further strengthened through investments made in, among other things,
aircraft, warehouses and other property, plant and equipment. At the
beginning of each year, the Group's operating cash flow and liquidity
position are 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, in January. In spite of this
payment, which amounted to EUR 542 million in the first quarter of 2011,
net cash outflow from operating activities totaled only EUR 34 million
(2010: minus EUR 95 million) during the first three months of this year.
Including these pension payments, the Group's net liquidity fell by EUR 298
million during the first quarter, from EUR 1.4 billion at the end of 2010
to EUR 1.1 billion. The company's free cash flow improved from minus EUR
376 million in the previous year's period to minus EUR 342 million in the
first quarter of 2011.
Guidance: short- and mid-term targets confirmed
Despite the current economic risks, the Group expects that the world's
economy will continue to recover this year, likely triggering a measureable
rise in global trade volume. Following the company's successful performance
in the first three months of the year, Deutsche Post DHL confirms its 2011
full year earnings guidance and continues to project an EBIT of between EUR
2.2 billion and EUR 2.4 billion. While the MAIL division is still expected
to contribute between EUR 1.0 billion and 1.1 EUR billion to this figure,
the company continues to forecast a double-digit increase of the operating
profit of DHL to between EUR 1.6 billion and EUR 1.7 billion. Expenses in
Corporate Center/Other should total about EUR 400 million. Consolidated net
profit, adjusted for effects stemming from the valuation of the Postbank
transaction, should continue to improve during 2011 in line with the
operating business. The medium-term growth targets as set at the end of
2010 were also confirmed: provided the world economy continues to recover,
the overall positive earnings trend should continue in future years.
Earnings at the MAIL division should stabilize at around EUR 1 billion, and
EBIT at DHL should climb by an average of 13 percent to 15 percent annually
through 2015.
'We are in an extremely good position from which we can benefit from the
continued recovery of the global economy to generate profitable growth and
achieve our short- and mid-range targets. In particular, our excellent
position in the world's growth markets will pay off even more in the future
and be a key contributor to sustainable revenue and earnings growth in all
DHL divisions,' Appel said. 'At the same time, with our dynamic parcel
business and the continued expansion of our digital business, we have also
created ideal conditions to stabilize the contribution from our MAIL
division.'
MAIL division: parcel business remains dynamic
In the first three months of 2011, revenue in the MAIL division was EUR 3.5
billion, the same level as the previous year (2010: EUR 3.5 billion). Even
though volumes stabilized, revenues in the traditional mail business
continued to fall due to the discounts that the Group is providing its
customers following the imposition of the value-added tax last July. This
development, however, was offset by the continued growth being produced by
the parcel business. Thanks to growth generated by dynamic Internet
retailing, revenue in this segment climbed by nearly 9 percent to more than
EUR 700 million in the first three months of 2011. As a result, the rapidly
growing parcel business is now already generating one-fifth of the
division's total revenue. EBIT in the MAIL division totaled EUR 373 million
in the first quarter, slightly below the previous year's level of EUR 389
million. This decrease resulted largely from the effect of the value-added
tax and expenses associated with the expansion of the divison's digital
business. The impact of these developments on the division's profitability,
however, could be limited through the higher earnings generated by the
parcel business and strict cost management.
EXPRESS division: international express business continues to grow
The EXPRESS division continued its successful revenue and earnings
performance in the first quarter of 2011. Revenues climbed by 5.5 percent
in the first three months of the year to EUR 2.8 billion (2010: EUR 2.6
billion). The positive performance was largely the result of markedly
higher volume of international shipments. This trend more than offset the
sale of the domestic express business in the United Kingdom and France.
Higher revenue produced by fuel surcharges also helped to boost revenues.
The EXPRESS business performed particularly well in the Americas and
Asia-Pacific regions, where double-digit revenue growth was generated. The
division's operating profit also rose sharply during the reporting period:
at EUR 216 million, EBIT nearly doubled in the first three months of 2011
(2010: EUR 110 million). In addition to the revenue and volume growth as
well as continued strict cost management, a major reason for this strong
increase was the successfully completed restructuring measures, which in
the same quarter last year had caused expenses of EUR 44 million.
GLOBAL FORWARDING, FREIGHT division: EBIT improvement supported by margin
stabilization
In the GLOBAL FORWARDING, FREIGHT division, revenues in the first quarter
of 2011 climbed to EUR 3.6 billion. This represents a 14.9 percent increase
from the previous year's level of EUR 3.1 billion. These gains are a
reflection of double-digit revenue increases generated in the air and ocean
freight as well as the European overland transport segment. In spite of
rising fuel costs, the division profited at the beginning of the year from
lower freight rates and improved buying conditions. This resulted in a
stabilization of margins. Accordingly, the divisional EBIT increased
strongly by 30.2 percent, from EUR 53 million in the first quarter of 2010
to EUR 69 million in the first three months of this year. Last year's
operating result included restructuring charges totaling EUR 1 million.
SUPPLY CHAIN division: successful new business development
Revenues generated by the SUPPLY CHAIN division during the first quarter of
2011 also grew significantly. At EUR 3.3 billion, it was 7.5 percent above
the previous year's level of EUR 3.0 billion. While all segments
contributed to these revenue gains, the 'Retail' and 'Life Sciences&Healthcare' sectors, which produce nearly half of the division's revenue,
performed particularly well. The highest regional revenue gains were
produced once again in the Asia-Pacific region. At EUR 320 million, the
volume of newly concluded contracts with new and existing customers was
one-third higher than during the same period of last year. At the same
time, the profit margins of the new contracts reflect a significant
improvement compared to the previous year. As a result of the profitability
gains, which in the first quarter were largely the result of an improved
contract mix, strict cost management and higher business volume, EBIT rose
by 39.3 percent, from EUR 56 million in the first three months of 2010 to
EUR 78 million in 2011. The previous year's figure included restructuring
charges of EUR 7 million.
- End -
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
End of Corporate News
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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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123690 10.05.2011
Datum: 10.05.2011 - 07:00 Uhr
Sprache: Deutsch
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