DGAP-News: Deutsche Post AG: Deutsche Post DHL exceeds forecasts for 2009
(firmenpresse) - Deutsche Post AG / Final Results
09.03.2010 07:00
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Deutsche Post DHL exceeds forecasts for 2009 and targets sustainable
earnings improvement
- Underlying EBIT of EUR1.47 billion surpasses the revised guidance of at
least EUR1.35 billion
- Consolidated net profit of EUR644 million considerably higher than 2008
- Group presents the cornerstones of its new financial strategy -
proposed dividend for 2009 unchanged at EUR0.60
- Group forecasts higher operating profit for 2010 and 2011
- CEO Frank Appel: 'We have successfully managed the crisis.'
- Hermann Ude and Bruce Edwards appointed to Board of Management for a
further five-year term
Bonn, 9 March 2010: The world's leading mail and logistics group, Deutsche
Post DHL, generated underlying EBIT of EUR1.47 billion in the full year
2009, exceeding its November forecast of at least EUR1.35 billion. One of
the key contributors to this positive development was the introduction of
the 'IndEx' program at the end of 2008: It generated cost savings of EUR1.1
billion - one year ahead of the original schedule and EUR100 million ahead
of the last forecast for the end of 2009. These efficiency increases also
significantly helped Deutsche Post DHL to achieve its consolidated net
profit target. Following a loss in 2008, the full-year consolidated net
profit rose to EUR644 million in 2009. Deutsche Post DHL's 2009 capital
expenditure of EUR1.17 billion also fully met expectations.
'We have successfully managed the repercussions of the economic crisis and
exceeded our targets for 2009,' said Frank Appel, Chief Executive Officer
of Deutsche Post DHL. 'Thanks to strict cost management and the consistent
implementation of our Strategy 2015, we are now able to benefit
overproportionally from the accelerating global economic recovery.'
Outlook: Sustainable improvement of profitability
For this year, the Group foresees a moderate recovery in global transport
volumes. Against this backdrop, Deutsche Post DHL expects underlying EBIT
to total between EUR1.6 billion and EUR1.9 billion in 2010. In a reflection
of the Group's two-pillar strategy announced last year, the DHL Divisions
and the MAIL Division are to make roughly equal contributions to earnings
for the first time: While the MAIL Division is expected to generate
earnings between EUR1.0 billion and EUR1.2 billion, the contribution by DHL
is expected to total between EUR1.0 billion and EUR1.1 billion. Corporate
Center expenditures are forecast at around EUR400 million. As a result of
an anticipated significant decline in non-recurring items Deutsche Post
DHL's reported EBIT is expected to be considerably above last year's level.
Consolidated net profit should further improve compared to 2009. 'We are
optimistic about the future, even though many uncertainties remain about
the strength of the economic recovery as well as about political and
regulatory issues,' Appel added. 'We will move ahead as planned this year
and sustainably improve the Group's profitability with innovative products,
high service levels and the ongoing development of customer-oriented
solutions.' The Group expects the positive earnings trend to continue in
2011.
Business year 2009: Increase in earnings despite global economic crisis
At Deutsche Post DHL, the global economic crisis caused a significant
decrease in transport volumes last year triggering a 15.2 percent drop in
revenues to EUR46.2 billion. However, successful cost cutting across all
businesses, substantially lower restructuring expenses as well as the
planned reduction of losses from the U.S. EXPRESS business helped mitigate
the impact on the Group's profitability. Reported EBIT of EUR231 million
for 2009 thus substantially exceeded the EUR966 million loss incurred in
2008. The 2009 result includes losses from the Arcandor insolvency and
costs related to onerous contracts amounting to a total of EUR344 million.
In addition to the operational improvements, positive effects from the
Postbank sale as well as lower taxes led to an increase of the consolidated
net profit to EUR644 million compared to a loss of EUR1.7 billion in 2008.
As a result, earnings per share climbed from EUR-1.40 in the previous year
to EUR0.53 in 2009.
Based on last year's positive results and the Group's confidence in the
future, the Board of Management and the Supervisory Board will propose a
dividend of EUR0.60 to the Annual General Meeting on April 28, 2010,
maintaining last year's level. In addition, Deutsche Post DHL's Supervisory
Board in its meeting yesterday appointed Hermann Ude and Bruce Edwards to
the Board of Management for another five years starting 2011. Ude (48) will
continue to be in charge of the Corporate Division 'Global Forwarding,
Freight' while Bruce Edwards (54) will remain in charge of the Corporate
Division 'Supply Chain'. Both were first appointed to the Board of
Management in March 2008.
Financial strategy: Focus on stability and flexibility
As in the past, ensuring financial stability and flexibility will remain a
top priority for Deutsche Post DHL. As an appropriate balance sheet
structure is paramount to achieving this objective, the Group's new
financial strategy will predominantly focus on the firm's credit rating:
Deutsche Post DHL currently holds a BBB+ rating from Standard&Poor's and
a Baa1 from Moody's. The company seeks to retain these rating levels
long-term. The financial strategy also includes a specific target for the
long-term dividend policy: going forward, the firm plans to distribute 40
percent to 60 percent of its consolidated net profit to shareholders. 'This
long-term oriented dividend policy with its focus on sustainability is an
important message to the capital market, showcasing our efforts to further
increase our attractiveness to investors,' explained Deutsche Post DHL
Chief Financial Officer Larry Rosen. 'At the same time, our financial
strategy will ensure that we possess the necessary financial strength and
flexibility to further grow our operations and thus successfully implement
our Strategy 2015.'
Fourth quarter 2009: Negative revenue trend halted
During the fourth quarter, the Group was able to halt the negative revenue
trend created by weakened demand and reduced transport rates. The Group
increased quarter-on-quarter revenues for the second time in a row.
Year-on-year, though, revenues fell by 11.6 percent to EUR12.4 billion. At
EUR-283 million, the consolidated net profit was considerably better than
the previous year's level. A loss of more than EUR3 billion was recorded in
the final quarter of 2008. At the same time, earnings per share rose from
EUR-2.64 to EUR-0.24. The loss of the final quarter in 2009 is wholly
attributable to high restructuring costs, expenditures related to the
Arcandor insolvency and costs related to onerous contracts.
MAIL Division: Market share maintained
During the past year, the MAIL Division not only was affected by the global
economic crisis, but was also confronted with the increasing substitution
of physical mail by electronic media. As a result, revenues were 4.9
percent below the previous year's level, totalling EUR13.7 billion. Thanks
to its intense customer focus and its high-quality service, Deutsche Post
maintained its share of this shrinking market at87.2 percent. In addition,
comprehensive cost-cutting measures cushioned the impact from higher wages
and losses related to the Arcandor insolvency on the division's
profitability. For fiscal year 2009, underlying EBIT fell by 14.0 percent
to EUR1.4 billion. In the fourth quarter, though, it rose by 7.4 percent
despite the continuing decline in revenues.
EXPRESS Division: Profitability improved
Lower volumes also impacted the EXPRESS Division. During the second half of
the year, however, trade volumes began to rise sequentially. The fourth
quarter saw a slight recovery of the Time Definite Domestic and Day
Definite Domestic product groups outside the U.S. Nonetheless, revenues for
fiscal year 2009 fell by 24.4 percent year-on-year to EUR10.3 billion. The
main causes of this decrease were the Group's exit from the domestic
express business in the U.S. along with exchange rate fluctuations and
lower revenues from fuel surcharges. Outside the U.S., revenues adjusted
for acquisitions and exchange rate fluctuations were only 11.8 percent
below the previous year's level. The smallest drop in revenues was reported
by the Asia Pacific region at 6.0 percent to EUR2.6 billion. In Europe and
the EEMEA region (Eastern Europe, the Middle East and Africa), revenues
fell by 15.5 percent and 10.4 percent, respectively, to EUR5.6 billion and
EUR1.1 billion. In the Americas region, which includes Latin America and
the Caribbean as well as Canada and the U.S., revenues decreased by 58.6
percent. Excluding the U.S., revenues in the region fell by 14.8 percent in
the past year.
Unlike the revenue trend, the division's profitability climbed considerably
in the past year. Thanks to strict cost management, underlying EBIT was
45.1 percent above the previous year's level at EUR238 million. A key
reason for this positive development was the significant reduction in
losses previously incurred in the U.S. The target of reducing the
annualized loss to less than U.S.$400 million by the fourth quarter has
been achieved. In the other regions, underlying EBIT totalled EUR692
million, compared to EUR1.1 billion in the previous year.
GLOBAL FORWARDING, FREIGHT Division: Positive trend
The decline in world trade levels resulted in double-digit decreases in
transport volumes in the air and ocean freight markets. Nonetheless, the
GLOBAL FORWARDING, FREIGHT Division was able to sequentially increase
volumes each quarter during the year. Marketing and sales efforts were
increasingly successful, particularly in the areas of life sciences and
consumer goods. Due to the initial economic recovery, air freight volumes
rose year-on-year for the first time in six quarters during the fourth
quarter. In fiscal year 2009, DHL was able to maintain or even expand its
market share in the international air and ocean freight markets and in
European road transport. However, as a result of the general decline in
freight volumes, lower fuel surcharges and reduced freight rates, revenues
in this division were 23.3 percent lower year-on-year at EUR10.9 billion.
Thanks to systematic cost management including noteworthy productivity
gains, the effect on the division's profitability could be cushioned. The
underlying EBIT decreased from EUR403 million in 2008 to EUR272 million.
SUPPLY CHAIN Division: Market position further strengthened
Despite the difficult market conditions, the contract logistics business of
Deutsche Post DHL was able to further expand its market position in 2009.
Two key reasons for this positive development were new business contracts
worth EUR1.1 billion and a continuing high contract-renewal rate of 90
percent. Nonetheless, revenues fell by 8.8 percent to EUR12.5 billion. This
decrease resulted from substantial negative currency translation effects
and the company's own decision to decline renewal of underperforming
contracts or to terminate them prematurely. With the help of cost-cutting
measures, the impact of the economic crisis on the division's profitability
could be held in check. While underlying EBIT was indeed EUR-121 million,
this loss wasexclusively related to charges totalling EUR213 million that
were connected with the insolvency of Arcandor. Excluding this effect and
additional one-time costs for onerous contracts, underlying EBIT in this
division would have been near the previous year's total of EUR196 million.
- Ends -
Note to the media: Go to www.dp-dhl.com for further information, including
interviews with CEO Frank Appel and CFO Larry Rosen. The Annual Earnings
Press Conference of Deutsche Post DHL will be broadcast live on the
Internet at www.dp-dhl.com from 10 a.m. CET. The full annual report 2009
will be published on the Internet on March 16 at 8 a.m. CET.
Deutsche Post DHL
Corporate Communications - Global Media Relations
Silje Skogstad
Sebastian Steffen
Telephone: +49 (0)228 182-9944
E-mail: pressestelle(at)deutschepost.de
09.03.2010 07:00 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Deutsche Post AG
Charles-de-Gaulle-Straße 20
53113 Bonn
Deutschland
Phone: +49 (0)228 182 - 63 100
Fax: +49 (0)228 182 - 63 199
E-mail: ir(at)deutschepost.de
Internet: www.dp-dhl.de
ISIN: DE0005552004
WKN: 555200
Indices: DAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Düsseldorf, Hannover, München, Hamburg, Stuttgart;
Terminbörse EUREX
End of News DGAP News-Service
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