DP-DHL Group profits despite worsening trade environment

DHL Global Forwarding

Deutsche Post DHL Group, continued its profitable growth course in the second quarter of 2019 with growth across all five divisions, despite the dampening effect of trade tensions.

In the period April-June, the Group increased revenue by 3.0 per cent year-on-year (YoY)to EUR 15.5 billion with operating profit (EBIT) improving by 2.9 per cent to EUR 769 million.

For the first half of the year, DP-DHL saw revenue grow 3.6 per cent to EUR 30.8 billion while operating profit was up 16.7 per cent YoY to EUR 1.9 billion.

The Group’s Global Forwarding division reported a 2.5 per cent YoY to EUR 3.8 billion for the quarter and by 3.6 per cent to EUR 7.6 billion for the first half, even as global air freight volumes declined by 5.8 per cent YoY in Q2 to 888,000 tonnes and by 4.9 per cent to 1.8 million tonnes in H1.

The Express division reported a 4.8 per cent increase in revenue to EUR 4.2 billion for Q2 and a 5.0 per cent increase in revenue to EUR 8.2 billion for H1.

The Supply Chain division saw operating profit drop steeply to EUR 87 million in Q2, which the company said was influenced by the sale of its business in China.

But, during the first half overall, operating profit more than tripled, thanks to growth in the Americas region. Revenue for the division increased by 1.2 per cent in Q2 YoY to EUR 3.3 billion and by 2.9 per cent for H1 to EUR 6.5 billion.

DHL’s eCommerce Solutions unit saw a 6.2 per cent revenue growth to EUR 995 million for Q2, which supported the 7.6 per cent increase in revenue for the first half of 2019 to just under EUR 2.0 billion.

“Overall, Deutsche Post DHL Group is in good shape,” says Frank Appel, CEO of Deutsche Post DHL Group. “Our business developed as planned in the second quarter. We have already generated Group EBIT of about EUR 1.9 billion after six months. That’s nearly half of our minimum target for 2019.”

Citing the traditionally strong fourth quarter, Appel says DP-DHL is “confident about our further performance and have raised the lower end of our full-year forecast–despite the challenging macroeconomic environment.” For the current financial year, the group now expects to increase operating profit to between EUR 4.0 and EUR 4.3 billion (previously EUR 3.9 to EUR 4.3 billion).

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DP-DHL Group profits despite worsening trade environment
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DP-DHL Group profits despite worsening trade environment
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Deutsche Post DHL Group, continued its profitable growth course in the second quarter of 2019 with growth across all five divisions, despite the dampening effect of trade tensions.
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AsiaCargoBuzz.com
AsiaCargoBuzz.com
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