Deutsche Post DHL Group continued to grow in the third quarter and is well on its way to reaching the Group’s earnings targets for full year 2018.
Between July and September, Group revenue increased by 1.4% year on year to EUR 14.8 billion.
The revenue increase was 4.7% adjusted for currency effects and portfolio changes.
Notable increases at Express and Global Forwarding, Freight mainly contributed to the Group’s s organic revenue, which continued to rise significantly thanks to the booming e-commerce business and continued momentum in international trade flows.
The Group’s operating profit (EBIT) came in at EUR 376 million for the third quarter. While this figure was below the prior-year amount of EUR 834 million, it was fully in line with the Group’s forecasts.
All of the DHL divisions reported EBIT increases, some significant. However, earnings in the Post - eCommerce - Parcel (PeP) division were below last year, as expected.
The decline was above all due to planned, previously communicated one-time charges relating to profitability improvement measures at PeP.
Of the restructuring costs of around EUR 500 million announced for 2018 last June, the Group recognized the majority (EUR 392 million) during the third quarter.
Adjusted for those expenses, the Group’s operating profit was EUR 768 million. In addition, Deutsche Post DHL Group has spent EUR 45 million of the announced yearly investment of EUR 150 million in productivity increases.
Said Frank Appel, CEO of Deutsche Post DHL Group. “Deutsche Post DHL Group remains in good shape with our fundamental growth drivers intact.
“This is especially evident in the continued good performance of our DHL Express, Global Forwarding, Freight, and Supply Chain divisions in the third quarter.
“We are tackling the challenges in our Post - eCommerce - Parcel division with determination and are making good progress in implementing the announced measures to improve productivity and the cost structure.
"We are confident that we will reach our earnings targets for 2018 and 2020 despite the significant rise in macroeconomic risk factors in recent months due to trade disputes and currency fluctuations, for example.”
The earnings forecast for 2018 does not reflect potential positive effects related to the Supply Chain-transaction in China.
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