Global logistics service giant Deutsche Post DHL made a strong finish in 2013, posting operating earnings of EUR885 million (US$1.22 billion) in the final quarter of the year, up 7 percent from the previous year’s EUR827 million.
Final-quarter revenues reached EUR14.5 billion, slightly below the 2012 level of EUR14.6 billion as a result of exchange rate fluctuations and other outside factors. Adjusted for these factors, revenues rose by more than EUR600 million, or over 4 percent.
“The final three months of 2013 were the most profitable period for the group during the year,” said the company.
Double-digit gains in EBIT (earnings before interest and taxes) at the DHL express division helped to boost the bottom line.
Consolidated net profit in the quarter climbed by 43.5 percent, increasing from EUR538 million in 2012 to EUR772 million in 2013.
For the whole of 2013, combined revenues totaled EUR55.1 billion, a 0.8 percent decline year-over-year from EUR55.5 billion due to exchange-rate variations and other outside variables. Adjusted revenues rose by nearly 3 percent.
Higher postal rates and rising volume and revenues in the parcel business in Germany helped fuel the improvement, as did a strong growth in the express business and revenue gains in the supply chain division.
Group EBIT for the year 2013 rose to EUR2.86 billion, which the European company said was within the target of between EUR2.75 billion and EUR3 billion. Consolidated net profit reached EUR2.1 billion, an increase of more than EUR450 million compared to 2012.
“We took a significant step forward in 2013. We built upon our existing strengths, affirmed our strong market position and significantly improved the company in all aspects of our Strategy 2015,” said Frank Appel, CEO of Deutsche Post DHL. “We will nevertheless continue to work hard to reach our 2015 goals given the continued sluggish global economic environment.”
Despite forecasts of a modest recovery for the world economy this year, the group expects to continue to post strong earnings and increase its EBIT in 2014 to between EUR2.9 billion and EUR3.1 billion.
For 2015, it believes it will again meet its target, expecting to increase operating profit to between EUR3.35 billion and EUR3.55 billion.