DGAP-News: Deutsche Post DHL remains on growth path - full-year earnings guidance increased
(firmenpresse) - DGAP-News: Deutsche Post AG / Key word(s): Quarter Results/Change in
Forecast
Deutsche Post DHL remains on growth path - full-year earnings guidance
increased
09.11.2011 / 07:00
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Deutsche Post DHL remains on growth path - full-year earnings guidance
increased
- Group revenues climb to EUR 13.1 billion in the third quarter
- Group EBIT markedly increased - double-digit earnings growth generated
by all divisions
- Increased earnings guidance for 2011: EBIT expected to be above EUR 2.4
billion
- Group CEO Frank Appel: 'Our growth trend clearly continues'
Bonn/Frankfurt am Main, November 9, 2011: Deutsche Post DHL, the world's
leading postal and logistics group, boosted revenues and significantly
improved its profitability in the third quarter of 2011. Compared with the
previous year, Group revenues increased by 2.5 percent to EUR 13.1 billion
between July and September. Adjusted for exchange-rate and consolidation
effects, the upward trend was even more pronounced: revenues increased by
5.7 percent and continued the high growth level achieved in the first half
of the year. All of the Group's divisions contributed to the company's
strong performance: The MAIL division profited from its parcel business,
which continued to benefit from the rapid growth of Internet retailing. At
the same time, DHL's excellent positioning in the growth markets of the
world - particularly Asia - enabled another powerful performance of the
company's logistics divisions. In addition, thanks to significant margin
improvements all divisions also produced double-digit growth rates in
profitability. As a result, the Group's operating earnings climbed by 18.5
percent to EUR 646 million. At the same time, the company's consolidated
net profit increased to EUR 385 million between July and September 2011
from EUR 226 million in the prior year's quarter.
'Our growth trend clearly continues,' said Frank Appel, CEO of Deutsche
Post DHL. 'Our third quarter performance underscores our exceptional market
positioning once again. We are located in all of the regions and markets
that continue to generate particularly strong growth: in the emerging
markets of Asia, the Middle East and Latin America as well as in the
dynamic German parcel market.'
Outlook: earnings guidance increased - EBIT expected to be above EUR 2.4
billion
Thanks to the strong third-quarter performance, Deutsche Post DHL has
raised its earnings guidance for the full year: The Board of Management now
expects the Group's EBIT to be above EUR 2.4 billion in 2011. Previously,
the company had projected that operating earnings were likely to finish at
the upper end of the previously announced range of EUR 2.2 billion to EUR
2.4 billion. The MAIL division is now expected to contribute around EUR 1.1
billion to this total (previously: EUR 1.0 billion to EUR 1.1 billion). At
the same time, the Group projects that operating earnings in the DHL
divisions will increase at double-digit rates to above EUR 1.7 billion
(previously: EUR 1.6 billion to EUR 1.7 billion). Expenses in Corporate
Center/Other should total about EUR 400 million. The Group also expects
that consolidated net profit, adjusted for the valuation effects related to
the Postbank transaction, should continue to improve during 2011 in line
with the operating business.
'We are in an exceptional position to benefit from the market dynamics,'
Appel said. 'In upcoming months, we will channel our positive momentum into
further improving our product offering for our customers and continuing to
prepare ourselves for future market challenges. This strong foundation will
allow us to remain on our successful growth course also if the economic
tailwind should ease somewhat.'
Third quarter 2011: strong growth in revenues and earnings
The Group's revenues grew to EUR 13.1 billion in the third quarter.
Adjusted for exchange-rate and consolidation effects, this result reflects
organic growth of more than EUR 700 million (+5.7%) compared with the
previous year's level. The Group's earnings improvement was even stronger:
At EUR 646 million, EBIT generated in the third quarter grew more than EUR
100 million (+18.5%) above the previous year's level of EUR 545 million.
Thereof a total of EUR 440 million was produced by the three DHL divisions,
an increase of more than EUR 50 million compared with the same period last
year. The Group's consolidated net profit reached EUR 385 million during
the last quarter, climbing more than 70 percent above last year's amount of
EUR 226 million. This amounts to an increase in quarterly earnings per
share from EUR 0.19 between July and September 2010 to EUR 0.32 in 2011. In
addition to operating improvements, which were the result of the strong
efficiency gains achieved in recent years, positive effects related to the
valuation of the Postbank transaction contributed significantly to the
strong increase in consolidated net profit. Adjusted for the Postbank
valuation effects, the Group's net earnings growth would have been 13
percent during the third quarter.
Capital expenditure: foundation for future growth further reinforced
During the third quarter of 2011, the Group significantly increased its
capital expenditures, further strengthening the company's foundation for
future growth: At EUR 418 million, capital expenditure jumped nearly 50
percent above the previous year's level of EUR 282 million. During the
first nine months of the year, the Group made investments of EUR 1 billion,
exceeding the previous year's figure by nearly EUR 300 million as planned.
Investments increased in particular in the DHL divisions in order to
further bolster the platform for profitable growth and sustainable company
success. The focal points of these expenditures included a more efficient
aircraft fleet, state-of-the-art warehouses, a high-end IT infrastructure
and new vehicles. Propelled by the pronounced rise of operating earnings,
the Group's operating cash flow climbed by EUR 194 million to EUR 826
million in the third quarter of 2011. Similarly, free cash flow grew from
EUR 327 million in the third quarter of 2010 to EUR 480 million this year.
In the first nine months of 2011, the Group's net liquidity fell by only
about EUR 800 million compared with the end of 2010 despite the annual
payment to the Bundes-Pensions-Service, a special pension fund for the
company's civil servants, and the dividend payment, which together amounted
to more than EUR 1.3 billion. With EUR 592 million, the Group continued to
have a very solid liquidity position at the end of the third quarter.
Compared with the level at the end of second quarter this reflects an
increase of EUR 390 million.
First nine months 2011: DHL as earnings growth driver
In the first nine months of fiscal year 2011, revenues rose by 3.2 percent
to EUR 38.8 billion. At 6 percent the rise in revenue was significantly
higher when adjusted for exchange-rate and consolidation effects. Thanks to
its improved revenues and increased earnings strength, the company boosted
its operating earnings by more than 40 percent to EUR 1.8 billion. With an
earnings contribution of EUR 1.3 billion and an improvement totaling more
than EUR 500 million compared with last year, the DHL divisions were the
driving force behind most of the Group's EBIT and its growth. In addition
to the steep rise in revenues and improved efficiency, the planned absence
of any restructuring expenses, which totaled about EUR 300 million last
year, had a positive impact on the operating earnings development.
During the first nine months of 2011, the Group's net financial income fell
by EUR 1.4 billion to minus EUR 411 million year on year. This decrease was
solely due to the valuation of financial instruments related to the sale of
Postbank. While last year's financial result included positive effects of
EUR 1.3 billion related to the Postbank transaction, expenses totaling EUR
107 million were incurred in the first nine months of 2011 as a result of
it. This extraordinary accounting effect also had a major impact on the
Group's consolidated net profit and overshadowed the underlying operating
improvement: During the first nine months of 2011, consolidated net profit
fell from EUR 2.1 billion in 2010 to EUR 988 million in the current fiscal
year. This amounts to a decrease in earnings per share to EUR 0.82 (2010:
EUR 1.70). However, adjusted for the Postbank valuation effects for both
years, consolidated net profit and earnings per share would have increased
by more than 50 percent each during the first nine months.
MAIL division: increasing momentum in the parcel business
In the third quarter of 2011, revenues in the MAIL division improved by 2.6
percent to EUR 3.4 billion (2010: EUR 3.3 billion). Despite the discounts
that the Group is providing its customers following the imposition of the
value-added tax in July 2010, the division succeeded in stabilizing
revenues in its traditional mail business. At the same time, the division
further boosted the growth momentum of its parcel business thanks to
dynamic Internet retailing and the division's strong product offering that
is tailored to meet the customers' needs. The third-quarter increases
achieved both in terms of revenues and the number of transported parcels
exceeded the growth rates produced in the first half of the year: While
total volume was more than 11 percent above the previous year's level, the
division's revenues climbed by more than 10 percent to EUR 748 million
between July and September. This positive trend was a main driver for a
significant earnings improvement in the MAIL division: EBIT totaled EUR 302
million in the third quarter, reflecting an increase of 17.5 percent above
the previous year's level of EUR 257 million.
EXPRESS division: accelerating growth
During the third quarter of 2011, the EXPRESS division continued its
successful revenue and earnings development, even further accelerating the
business momentum. Between July and September, revenues hit EUR 2.9
billion, 7.7 percent more than during the same period last year, when the
division generated EUR 2.7 billion of revenues. Adjusted for exchange-rate
and inorganic effects, revenues climbed by 12.7 percent in the past
quarter, finishing above the very high growth rates that the division had
recorded in the first two quarters of the year. Above all, this strong
performance reflected double-digit growth in volume and revenues for
international shipments. The Asia-Pacific region once again proved to be
the growth driver for both the Group and the EXPRESS division. During the
third quarter, the division also generated double-digit growth in operating
earnings: At EUR 219 million, EBIT produced in 2011 was 10 percent higher
than last year (2010: EUR 199 million). In addition to the strong growth in
volumes and revenues, this strong performance was also driven by continued
strict cost management.
GLOBAL FORWARDING, FREIGHT division: revenue and margin improvements
In the GLOBAL FORWARDING, FREIGHT division, revenues increased by 1.9
percent in the third quarter, rising from EUR 3.7 billion in 2010 to EUR
3.8 billion this fiscal year. Adjusted for exchange-rate and consolidation
effects, revenues climbed by 3.4 percent between July and September. While
revenues in air and ocean freight came under pressure during the third
quarter, the Group's overland transport business continued to produce
strong gains. Even though fuel prices remained high, the division profited
from lower freight rates, improved purchasing terms and its concentration
on selective growth in attractive business areas. As a result, the division
was able to achieve further margin improvements, despite increasing
competition. Accordingly, profitability climbed sharply between July and
September: At EUR 122 million, third-quarter EBIT rose 22 percent above the
EUR 100 million that were achieved in the same period of last year.
SUPPLY CHAIN division: operating earnings rise steeply
At EUR 3.3 billion, revenues produced by the SUPPLY CHAIN division during
the third quarter of 2011 remained at last year's level. However, this
figure reflects the division's actual operating performance only to a
limited extent. Adjusted for exchange-rate and consolidation effects - such
as the divestment of a subsidiary in the United States that was not part of
the division's core business - revenues generated by the SUPPLY CHAIN
division actually rose by 6.2 percent during the three-months period. This
growth was fueled in particular by significant growth in the Asia-Pacific
region as well as the Life Sciences&Healthcare and Automotive sectors. At
EUR 280 million, the volume of new contracts concluded with new and
existing customers remained very high. The margin gains achieved in these
new contracts also underscore the division's ongoing successful
performance. A further demonstration of this success was the steep rise in
operating earnings. EBIT rose from EUR 83 million in the third quarter of
2010 to EUR 99 million in 2011, reflecting an increase of nearly 20
percent.
- End -
Contact for media queries:
Deutsche Post DHL
Media Relations
Silje Skogstad
Sebastian Steffen
Tel.: +49 (0)228 182-9944
In the Internet: www.dp-dhl.de/presse
Follow us at: twitter.com/DeutschePostDHL
Deutsche Post DHL is the world's leading mail and logistics services group.
The Deutsche Post and DHL corporate brands represent a one-of-a-kind
portfolio of logistics (DHL) and communications (Deutsche Post) services.
The Group provides its customers with both easy to use standardized
products as well as innovative and tailored solutions ranging from dialog
marketing to industrial supply chains. About 470,000 employees in more than
220 countries and territories form a global network focused on service,
quality and sustainability. With programs in the areas of climate
protection, disaster relief and education, the Group is committed to social
responsibility. In 2010, Deutsche Post DHL revenues exceeded EUR 51
billion.
The postal service for Germany. The logistics company for the world.
For more information: www.dp-dhl.de
End of Corporate News
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Language: English
Company: Deutsche Post AG
Charles-de-Gaulle-Straße 20
53113 Bonn
Germany
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
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, Hannover, München, Stuttgart;
Terminbörse EUREX
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