Germany’s postal and logistics giant Deutsche Post DHL reinforced its goals for 2015, targeting a growth in EBIT (earnings before interest and tax) to between EUR3.35 billion (US$4.2 billion) and EUR3.55 billion ($4.4 billion) by 2015.
The 2015 target, which is about EUR1 billion more than the EUR2.44 billion generated last year, will be realized through raising the profitability of its different divisions, said CEO Frank Appel and CFO Larry Rosen during a discussion of the firm’s mid-term profitability targets at an investor event held in London on May 24.
The DHL divisions, in particular, are expected to contribute greatly to the group’s target with an operating profit of EUR2.7 billion to EUR2.9 billion by 2015, for an average annual growth of 13 percent to 15 percent between 2010 and 2015,
Earnings of the mail division, after years of decline, have become steady, and the division is projected to contribute a minimum of EUR1 billion to the group’s EBIT in 2015.
“The company is focusing on both continuing to leverage the dynamic market growth in the parcel business and developing further business opportunities with new digital products,” a company statement said of the mail division’s business strategy.
The firm also outlined the measures for improving earnings at the DHL divisions. The express division will focus on continuing the strong volume growth, systematic expansion of the express aviation network, and efficiency improvement.
In global forwarding, freight division, productivity and profitability are seen to get a boost from targeting growth, implementing a transformation program, and increasing efficiency through new IT systems and greater automation.
The supply chain division will ride on current trends—outsourcing, the gradual emergence of true global markets, and the growing need for comprehensive solutions from a single source—to further increase operating profit.
Appel said: “We have stabilized earnings in the mail division and are now capitalizing on the tremendous growth opportunities at DHL. The outlook ahead gives us good reason to be optimistic.”
Deutsche Post DHL also aims to reduce its corporate and other expenditures from around 400 million euros today to about 350 million euros by 2015.
Photo: Deutsche Post DHL
