DGAP-News: DP DHL markedly boosts profits in the second quarter of 2011 - full-year earnings guidance improved
(firmenpresse) - DGAP-News: Deutsche Post AG / Key word(s): Half Year Results
DP DHL markedly boosts profits in the second quarter of 2011 -
full-year earnings guidance improved
02.08.2011 / 07:00
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Deutsche Post DHL markedly boosts profits in the second quarter of 2011 -
full-year earnings guidance improved
- Group revenues climb to EUR 12.8 billion in the second quarter - DHL
and German parcel business generate strong growth
- EBIT more than doubled in Q2, consolidated net profit tripled
- Improved earnings guidance for 2011: EBIT expected to reach upper end
of projected range of EUR 2.2 billion to EUR 2.4 billion
- CEO Frank Appel: 'We are continuing to grow'
Bonn, August 2, 2011: During the second quarter of 2011, Deutsche Post DHL,
the world's leading postal and logistics group, continued the strong
performance it showed in the first three months of the year and remained
firmly on its growth path. Group revenues climbed 0.3 percent to EUR 12.8
billion from April to June 2011 compared with the same period last year.
Adjusted for inorganic and exchange-rate effects, Group revenues rose by
5.8 percent, driven by the strong growth at DHL and the German parcel
business. The DHL divisions continued to benefit from the ongoing global
economic growth as well as its exceptional market position in the world's
fast growing regions - particularly in Asia. The Group's parcel operations
in Germany drew further strength from the dynamic Internet retailing
business. Thanks to continuing margin improvements in all DHL divisions,
the Group markedly increased its operating earnings once again: At EUR 562
million, EBIT in the second quarter of 2011 was more than doubled compared
to the same period last year. The improvement in consolidated net profit
was even stronger. At EUR 278 million, it more than tripled.
'We are continuing to grow and have kept the positive momentum of the last
quarters,' said Frank Appel, CEO of Deutsche Post DHL. 'The second quarter
once more proves the quality and sustainable nature of the efficiency gains
we have achieved over recent years.'
Second quarter 2011: revenues and profitability further increased
During the second quarter, the Group's revenues totaled EUR 12.8 billion.
Adjusted for exchange-rate effects and the deconsolidation of various
divested company units, the result reflects organic growth of more than EUR
700 million compared with the same period last year. In producing this
result, the company continued on the growth course chartered at the
beginning of the year. At the same time, the Group was able to even
accelerate the pace of its earnings increases: At EUR 562 million, EBIT
finished the second quarter more than EUR 300 million above the previous
year's level of EUR 253 million. The DHL divisions produced EUR 471 million
of the Group's operating earnings in the second quarter, nearly four times
more than in the same period last year (2010: EUR 122 million). In addition
to operational improvements achieved by the company, the absence of any
restructuring expenses, which totaled EUR 250 million last year, also had a
positive impact on the development of Deutsche Post DHL's operating
earnings. The operational improvements were also the key reason for the
strong growth in consolidated net profit: From April to June, this figure
totaled EUR 278 million, a level nearly EUR 200 million above the previous
year's result of EUR 81 million. This amounts to an increase in quarterly
earnings per share from EUR 0.07 in 2010 to EUR 0.23 in the second quarter
of 2011.
Capital expenditure: foundation of growth reinforced
As planned, the Group's capital expenditure totaled EUR 371 million in the
second quarter of 2011, more than 30 percent above the previous year's
level of EUR 286 million. During the first six months of the year, a total
of EUR 623 million was invested, an increase of more than EUR 140 million
compared with the previous year's total of EUR 481 million. Spending was
increased in particular at DHL in order to further strengthen the
foundation of future profitable growth through investment made in, among
other things, the modernization of the company's air fleet, warehouses and
other property, plant and equipment. During the first six months of a year,
the Group's cash flow and liquidity are regularly impacted by the annual
payment made in January to the Bundes-Pensions-Service, a special pension
fund for the company's civil servants, and the dividend payment in May.
Despite these recurring payments, which totaled more than EUR 1.3 billion
this year, the Group maintained a strong liquidity position during the
first six months of the year: At the end of the second quarter Deutsche
Post DHL's net liquidity amounted to EUR 202 million.
First half of 2011: further growth in revenues and earnings
After the company generated revenues of EUR 24.8 billion in the first half
of 2010, the Group increased its turnover to EUR 25.7 billion during the
first six months of the ongoing fiscal year. Thanks to marked volume and
revenue increases as well as the Group's improved efficiency, operating
earnings jumped by 55.7 percent to EUR 1.2 billion. With an earnings
contribution of EUR 834 million, reflecting an increase of nearly EUR 500
million over the same period last year, the DHL divisions generated the
lion's share of the Group's EBIT and its growth. In addition to improved
revenues and increased earnings strength, the planned absence of any
restructuring expenses, which totaled EUR 304 million during the prior year
period, contributed to the significant improvement of the Group's operating
earnings. The company's net financial income fell during the first half of
2011, dropping from EUR 1.2 billion in the same period last year to minus
EUR 319 million. This was, however, almost solely a result of the valuation
of financial instruments from the sale of Postbank. While last year's
financial result included positive effects of EUR 1.4 billion related to
the Postbank transaction, expenses totaling EUR 133 million were incurred
in the first six months of 2011. This extraordinary accounting effect also
had a major impact on the Group's consolidated net profit: During the first
half year, consolidated net profit fell from EUR 1.8 billion in the
previous year to EUR 603 million. This represents a decrease in earnings
per share from EUR 1.51 in 2010 to EUR 0.50 in the current fiscal year.
However, adjusted for the Postbank valuation effects for both years,
consolidated net profit and earnings per share would have increased by more
than 80 percent during the first six months of the year.
Outlook: full-year guidance improved - EBIT expected at upper end of target
range
Following its strong performance in the first six months of the year, the
company improved its earnings guidance for full year 2011. The Board of
Management continues to project an EBIT of EUR 2.2 billion to EUR 2.4
billion, but now - based on the positive results achieved in the first half
of the year - believes that the company's operating earnings will finish
the year at the upper end of this range. Earnings in the MAIL division are
still expected to total between EUR 1.0 billion and EUR 1.1 billion. The
company also continues to project double-digit growth in DHL's operating
earnings, which should reach EUR 1.6 billion to EUR 1.7 billion. Expenses
in Corporate Center/Other should total about EUR 400 million. Consolidated
net profit, adjusted for the valuation effects related to the Postbank
transaction, should continue to improve during 2011 in line with the
operating business.
'We remain confident concerning our future business development, also
against the backdrop of a more normalized level of global economic
activity,' Appel said referring to the Group's improved earnings guidance.
'We have the necessary skills and the required flexibility to remain firmly
on our successful growth course - both during the second half of the year
and beyond.'
MAIL division: profitable growth in the parcel business
Second quarter revenues in the MAIL division remained stable compared to
the prior year at a level of EUR 3.3 billion. Even though volumes
stabilized, revenue in the traditional mail business continued to decline
as a result of discounts that the Group is providing its customers
following the imposition of the value-added tax in July 2010. However, the
continuing momentum being generated by the parcel business almost
completely offset this reduction. In light of the rise in Internet
retailing, revenues in this business segment climbed nearly 8 percent to
EUR 667 million between April and June. At 10 percent, the increase in the
number of transported parcels recorded in the second quarter even exceeded
the growth rate generated in the first three months of the year. During the
second quarter, EBIT in the MAIL division totaled EUR 183 million, about 25
percent below the previous year's level of EUR 243 million. This was
largely the result of the value-added-tax effect and expenditures related
to the setup of the digital business. This drop could, however, be
partially offset by increased earnings in the parcel business and the
division's strict, ongoing cost management.
EXPRESS division: accelerated growth
The EXPRESS division continued its successful revenue and earnings
performance in the second quarter of 2011 and further increased the pace of
its growth. Revenues rose by 2.9 percent to EUR 3.0 billion (2010: EUR 2.9
billion). Adjusted for exchange-rate and consolidation effects, organic
revenue growth totaled 11.3 percent between April and June. This result was
a reflection of the double-digit growth rates in volumes and revenues in
international shipments. The Asia-Pacific region once again underscored its
role as the growth driver within the Group as a whole and at EXPRESS in
particular. The division's operating earnings also improved markedly in the
reporting period. While a loss of EUR 30 million was incurred in the second
quarter of 2010, EBIT climbed to EUR 244 million in 2011. In addition to
revenue and volume growth as well as systematic cost management, the
successfully completed restructuring measures played a major role in this
increase. During the same period last year, these measures resulted in
non-recurring expenses in an amount of EUR 228 million.
GLOBAL FORWARDING, FREIGHT division: revenue and margin improvements
In the GLOBAL FORWARDING, FREIGHT division, revenues rose to EUR 3.7
billion in the second quarter of 2011. The result represents an increase of
3.6 percent over the previous year's level of EUR 3.6 billion. However,
this figure only partially reflects the division's actual operating
performance. Adjusted for negative exchange-rate effects, the division's
organic revenue growth totaled 7.1 percent. This gain was a result of solid
growth in air and ocean freight as well as double-digit growth in the
European overland transport business. In spite of rising fuel costs, the
division profited from lower freight rates and improved purchasing
conditions, developments that resulted in margin improvements. As a result,
EBIT climbed by 13.1 percent, from EUR 99 million in the second quarter of
2010 to EUR 112 million in the same period of 2011. Last year's operating
earnings contained restructuring costs totaling EUR 3 million.
SUPPLY CHAIN division: operating earnings more than doubled
At EUR 3.2 billion, revenue in the SUPPLY CHAIN division fell 3.4 percent
during the second quarterof 2011 from the previous year's level of EUR 3.3
billion. This decrease, however, was solely attributable to negative
exchange-rate effects and the sale of a U.S. subsidiary that was not part
of the division's core business. Excluding these effects, revenue would
have climbed by 6.1 percent. The division's strong performance is also
reflected in the continued high volume of contracts concluded with new and
existing customers totaling EUR 220 million in the second quarter as well
as in the marked improvement in the profit margins of these new agreements.
This was also a driver of the significant rise of operating earnings, which
more than doubled from EUR 53 million in the second quarter of 2010 to EUR
115 million in the current year. The significant improvement was also
supported by the division's strict, ongoing cost management and the gain on
the disposal of the U.S. subsidiary. Furthermore, the previous year's
result contained restructuring expenses of EUR 17 million.
- End -
Contact for media queries:
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 at: twitter.com/DeutschePostDHL
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
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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133978 02.08.2011
Datum: 02.08.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 40444
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