Postal and logistics giant Deutsche Post DHL confirmed the group’s targets for 2013 and mid-term outlook, saying it was confident of the future after a successful 2012 and a solid start in the new year despite a challenging economic environment.
The group on May 14 reported that revenues for the first quarter of 2013 rose by 0.6 percent to EUR13.4 billion (US$17.5 billion) compared to the same period last year. Group EBIT in the first three months of the year rose by almost 3 percent to EUR711 million against the same period last year .
For the rest of 2013, Deutsche Post DHL continues to expect the global economy to generate moderate growth, and CEO Frank Appel confirmed the group’s guidance for the year, forecasting group EBIT to increase to between EUR2.7 billion and EUR2.95 billion. The mail division is still expected to contribute between EUR1.1 billion and EUR1.2 billion. At EUR2 billion to EUR2.15 billion, the contribution made by the three DHL divisions this year is again forecast to provide the largest share of the group’s operating earnings. Consolidated net profit is projected to grow in line with the operating business in 2013.
Appel also confirmed the company’s mid-range targets. Deutsche Post DHL aims to produce group EBIT of between EUR3.35 billion and EUR3.55 billion in 2015. The mail division’s EBIT contribution is expected to be at least EUR1 billion. For the DHL divisions, earnings are expected to increase at an annual average of 13 percent to 15 percent between 2010 and 2015, to continue rising to EUR2.7 billion to EUR2.9 billion through the end of the period.
The company added that it saw a sizable revenue increase and earnings growth that outpaced revenues in 2012. Appel said revenues last year were boosted by EUR2.7 billion, rising to EUR55.5 billion for a 5.1 percent increase from 2011. Operating earnings last year also grew to EUR2.67 billion, or a nearly 10 percent increase from the year-ago level. Consolidated net profit logged a 42.6 percent increase to EUR 1.66 billion.
“Strategy 2015 has given our company a clear compass that has made it possible for us to confidently navigate the financial and economic crisis. It will help us remain on track even without any economic tailwind,” Appel said. “At the same time, we continue to benefit from our ongoing efficiency gains. Only streamlined, flexible structures and continuous cost optimization will enable us to have the necessary financial strength to invest in the future and thus generate long-term profitable growth.”