Bonn-based Deutsche Post DHL increased both revenues and operating earnings slightly in the first three months of the year compared to the same period last, buoyed by volume and revenue gains from its global express business and the parcel segment in Germany.
In the first quarter the German postal and logistics group posted consolidated revenues of EUR13.4 billion (US$17.2 billion), representing a 0.6 percent increase over the corresponding period in 2012. Earnings before interest and taxes (EBIT) amounted to EUR711 million, an increase of 2.9 percent from the same quarter last year.
“Even though we have yet to feel any sort of economic tailwind, we were able to get off to a solid start in the new year,” said company CEO Frank Appel.
DHL Express was again the main driver of EBIT growth in the quarter. It reported revenues of EUR3 billion, slightly above the previous year’s level, as it gained from a 10 percent rise in daily shipment volumes. Operating earnings totaled EUR254 million, nearly 10 percent above the previous year’s EUR232 million.
Mail revenues increased 1.5 percent to EUR3.6 billion in the first three months of 2013 following a postal rate hike at the beginning of the year and the continued strong performance of the German parcel business. But EBIT fell by 2.6 percent in the first quarter of 2013 to EUR382 million as a result of a reduction in the number of working days as well as wage increases in the second quarter of 2012.
Global freight revenues in the first quarter decreased by nearly 2 percent to EUR3.6 billion, as air freight volume and revenues fell. Ocean freight performed better on the back of increased demand on the north-south routes and within Asia. Implementing selective marketing and cost management, the company saw operating earnings rise slightly to EUR88 million in Q1 from EUR87 million from a year ago.
Revenues in the supply chain division rose to EUR3.5 billion between January and March 2013, more than 2 percent above the previous year’s level. This growth was fueled by double-digit revenue surges in the Asia-Pacific region and in the automotive, retail, and airline services. But EBIT fell from EUR92 million in the first quarter of 2012 to EUR84 million this year due to insolvency proceedings involving a U.S. customer.
Deutsche Post DHL confirmed its 2013 EBIT guidance of between EUR2.7 billion and EUR2.95 billion, as it forecasts moderate growth in the world economy. It sees continued business gains over the next few years, forecasting operating earnings of EUR3.35 billion to EUR3.55 billion by 2015.