Bonn-based Deutsche Post DHL reported operating earnings of EUR827 million (US$1.07 billion) in the fourth quarter of 2012, a 38.1 percent increase from EUR599 million year-over-year.
The company attributed the positive growth to a boom in online shopping activity over the holiday season and a rise in cargo traffic in Asia.
The fourth quarter was the most profitable for the year and the strongest fourth quarter since 2007 for the world’s leading postal and logistics group.
Revenues for the quarter climbed by 3.2 percent to EUR14.6 billion compared to EUR14.1 billion in the quarter of the preceding year.
The company’s consolidated net profit more than tripled in the fourth quarter. At EUR542 million, net earnings were EUR367 million higher than the previous year’s EUR175 million.
All DHL divisions contributed to these gains as each division produced double-digit growth in earnings, a Deutsche Post DHL official statement said. The mail division’s EBIT (earnings before interest and taxes) increased by more than 50 percent in the fourth quarter.
For the whole of 2012, operating earnings reached EUR2.67 billion, more than 9 percent above the previous year’s level. Consolidated net profit climbed by about EUR500 million to EUR1.66 billion in 2012.
Group revenues amounted to EUR55.5 billion, a 5.1 percent increase year-on-year due mainly from its businesses in the world’s growth regions, especially in Asia.
The German company, which operates in more than 220 countries and territories in the world, said it was now generating about 70 percent of its revenues outside Germany, and its mail service continues to benefit from the rapid growth of online retailing.
For 2013, the group expects the world’s economy to generate moderate growth that should accelerate as the year progresses. It projects EBIT to increase to between EUR2.7 billion and EUR2.95 billion. The mail division is expected to contribute from EUR1.1 billion to EUR1.2 billion, while DHL should generate operating earnings between EUR2 billion and EUR2.15 billion.
Beyond 2013, the company remains optimistic that the positive earnings trend will continue. DHL earnings are forecast to rise by an annual average of between 13 percent and 15 percent between 2010 and 2015.
The mail division should see profit stabilizing at EUR1 billion at least, due to cost-cutting measures and growth programs introduced. Group operating earnings are seen to increase to between EUR3.35 billion and EUR3.55 billion by 2015.
“The past three years have demonstrated that our Strategy 2015 is paying off,” CEO Frank Appel said. “With our unique portfolio of products and services and our excellent position in the world’s growth markets—the emerging markets and online retailing—we have an exceptional base for generating further profitable growth.”
