Bonn-based Deutsche Post DHL said its net profit climbed to EUR422 million (US$562.3 million) in the second quarter of the year from EUR196 million ($261.2 million) in the same quarter in 2012, while operating earnings increased 14 percent to EUR619 million.
The increase arose from a reversal of a provision in postage stamp in the mail division and the absence of one-time effects that negatively impacted the previous year’s results.
Group revenues for the quarter totaled EUR13.6 billion, a 0.6 percent dip compared with the same period last year, as a result of the negative exchange rate and other inorganic effects.
Adjusted revenues increased nearly 2 percent from last year, the growth largely due to the continuing volume and revenue gains generated by the parcel segment in Germany, the international express business, and the supply chain division, a company statement said.
Consolidated EBIT (earnings before interest and taxes) jumped by 14 percent in the same period to EUR619 million.
“Given the economic challenges we continue to face, we can be satisfied with our solid performance in the second quarter,” said group CEO Frank Appel. “Our strength in the international express business and in Germany’s parcel market has paid off once again in the past few months.”
With these results, the company has increased its earnings guidance for the current financial year to a consolidated EBIT of between EUR2.75 billion and EUR3 billion from the original forecast of between EUR2.7 billion and EUR2.95 billion.
Operating earnings by the DHL divisions are still expected to total between EUR2 billion and EUR2.15 billion.
Earnings at the mail division are seen to rise to between EUR1.15 billion and EUR1.25 billion, EUR 50 million more than previously projected.
“At the same time we now expect that net profit growth should exceed the growth in operating profit in 2013,” Deutsche Post DHL said.
Beyond 2013, the group expects the positive earnings trend to continue. For DHL, earnings are forecast to rise by an annual average of between 13 percent and 15 percent between 2010 and 2015.
The operating profit of the mail division should stabilize to at least EUR1 billion, thanks to cost-cutting measures and growth programs introduced.
In the first half of the year, consolidated revenues remained at the previous year’s level at EUR27.1 billion. Adjusted for negative exchange-rate and other inorganic effects, revenues would have risen by 1.7 percent, or more than EUR450 million, in the first half.
Operating earnings rose by 7.8 percent compared with the first half of 2012, climbing to EUR1.3 billion. Adjusted EBIT would have risen slightly between January and June 2013.
Consolidated net profit climbed by 27 percent from EUR725 million in 2012 to EUR920 million during the current financial year. Adjusted profit would have risen by around 26 percent.
For the divisions’ individual performance during the second quarter of 2013, revenues in the mail division climbed by 4.4 percent to EUR3.4 billion due to revenue gains in the global mail business and the dynamic performance of the parcel operation in Germany.
Between April and June 2013, the express division reported revenues at level with the previous year’s EUR3.2 billion. Adjusted revenues rose by 4 percent in the second quarter.
In the global freight forwarding division, revenues in the second quarter of 2013 fell by 6.3 percent to EUR3.7 billion in a challenging market environment. Adjusted revenue would have been slightly lower at about 4 percent. Volume and revenues in airfreight fell below the previous year’s level primarily due to weak demand in the “technology” and “engineering and manufacturing” sectors.
Volume and revenues also decreased in ocean freight during the past quarter, largely resulting from weaker demand on traditional east-west trade lanes. In contrast, demand on north-south routes and within continents rose, with small revenue gains achieved in the European overland transport. Operating earnings in the division totaled EUR129 million in the second quarter from EUR138 million last year.
Revenues from the supply chain division in the second quarter of 2013 rose to EUR3.6 billion from EUR3.5 billion in 2012. Adjusted revenues climbed by nearly 6 percent, or about EUR200 million, fueled by significant gains in the Asia-Pacific region as well as in the automotive, retail, and consumer sectors. But EBIT fell to EUR79 million in the second quarter from EUR101 million) as a result of one-time expenses and small restructuring charges.