DHL Global Forwarding, Freight: Ocean freight remained largely stable
evenues of Deutsche Post DHL Group rose by 3.6% to EUR 30.8 billion in the first six months of 2019. Operating profit improved by 16.7% to EUR 1.9 billion. The DHL divisions in particular once again made encouraging earnings contributions, although the considerable jump in earnings was driven by a positive non-recurring effect from the Supply Chain partnership with S.F. Holding in China in the first quarter.
Consolidated net profit after non-controlling interests improved by 7.9% in the first six months to EUR 1.2 billion. Basic earnings per share increased to EUR 0.98 in the first six months in line with the increase in net profit (2018: EUR 0.91).
The Group still plans to increase capital expenditure to approximately EUR 3.7 billion for full-year 2019, up from EUR 2.6 billion in 2018. This includes approximately EUR 1.1 billion for the renewal of the intercontinental Express fleet. So far Deutsche Post DHL Group has commissioned the first two of 14 new Boeing 777 freight aircraft. Two further aircraft are scheduled to follow this year.
The Global Forwarding, Freight division posted a 2.5% increase in revenue year-on-year to EUR 3.8 billion in the second quarter. Growth in the global air freight market lost momentum in the period from April to June, while ocean freight remained largely stable and overland freight transport continued to see organic growth.
Thanks to higher gross profit margins in air freight and ongoing measures to improve cost efficiencies, the division significantly increased operating profit once again in the second quarter. EBIT improved by 18.1% to EUR 124 million.