Deutsche Post DHL’s growth accelerates in Q2

Consolidated revenue for the second quarter climbed 15.6% to €12.8 billion compared with the prior year period, driven by new contract wins and the marked increase in transport volumes fuelled by the continuing economic recovery, as well as favourable currency effects in all DHL divisions.

Efficiency measures implemented in 2008 and 2009 resulted in higher margins and increased profitability in all divisions.

At €503 million, the Group’s underlying EBIT was up 95.7% above the prior year period.  Despite significant non-recurring expenses of €250 million, which were mainly related to the sale of the domestic Express business in France, the Group’s consolidated net profit still increased by 22.7% to €81 million in the second quarter of 2010.

In the second quarter, reported EBIT climbed to €253 million (Q2 2009: €109m), including the €250 million non-recurring expenses.  At minus €142 million, the Group’s net financial result was considerably lower than the previous year’s level of minus €8 million, which was solely the result of changes in the valuation of financial instruments related to the sale of Postbank.

As a result of the operating improvements, the consolidated net profit after minorities nevertheless rose by 22.7% to €81 million.

In the first half of 2010, revenue was up 9.9% to €24.8 billion, with underlying EBIT up 87.9% to almost €1.1 billion – the direct result of growth in volumes and revenues as well as the Group’s increased efficiency. The increase in reported EBIT to €765 million is attributed to the significant reduction in non-recurring expenses. The Group’s consolidated net profit after minorities increased by 81% to €1.8 billion (H1 2009: €1bn).

At €3.2 billion, Q2 quarter revenue in the MAIL division was virtually unchanged from the previous year’s level, due to the continuing trend of the physical letter being replaced by electronic media as well as the loss of the Quelle business in Germany. However, due to strict cost discipline and increased earnings in the parcel business, underlying EBIT increased by 42.1% to €243 million during the second quarter (Q2 2009: €171m).

In the EXPRESS division, volumes continued to rise in the second quarter, propelled by the economic recovery. International revenues recorded double-digit growth, offsetting decreases in day-definite domestic products resulting mostly from the sale of the domestic Express business in the UK. Revenue climbed by 19.2% to reach €2.9 billion (Q2 2009: €2.4bn). Underlying EBIT more than tripled, from €65 million in Q2 2009 to €198 million in Q2 2010. In addition to increased revenue, the positive development mainly reflects the completed restructuring program in the US, the withdrawal from the domestic Express business in the UK and significant cost cuts achieved around the world.

In the GLOBAL FORWARDING, FREIGHT division, volumes continued to rise in Q2, with both airfreight and ocean freight recording double-digit growth rates. Together with higher freight rates, this development led to a 35.6% increase in revenue to €3.6 billion (Q2 2009: €2.7bn). Underlying EBIT rose 29.1% to €102 million (Q2 2009: €79m).

Despite the loss of the Quelle business, the SUPPLY CHAIN division’s revenue rose 10.7% in Q2 to reach €3.4 billion. New business wins and an increase in volume among existing contracts produced strong growth, particularly in the Asia-Pacific region.  During this second quarter, additional contracts with new and existing customers worth around €260 million were concluded. Underlying EBIT climbed strongly to €72 million (Q2 2009: €16m).