DHL Global Forwarding, Freight: Turnaround program initiated
Over the first six months, Deutsche Post DHL Group has taken important steps towards the successful implementation of the Strategy 2020
In the first half of the year, Deutsche Post DHL Group revenue increased by 8.1%, or approximately EUR 2.2 billion, to EUR 29.5 billion (2014: EUR 27.3 billion). Adjusted for positive currency effects, revenues increased 1.3% over the prior year period. Organic revenue growth in all four divisions contributed to this increase, with lower fuel surcharges holding back stronger growth. The operating earnings of the Group in the first six months declined by 9.1% to EUR 1.26 billion (2014: EUR 1.38 billion). Reported one-time factors that impacted the second quarter also had an effect on the half-year results.
Consolidated net profit was EUR 821 million for the first six months, 14.7% below the prior year level. (2014: EUR 963 million). Basic earnings per share were also correspondingly lower at EUR 0.68. Revenues in the Global Forwarding, Freight division increased by 3.8% in the second quarter to EUR 3.8 billion (2014: EUR 3.6 billion). Adjusted for currency effects, revenue decreased by 1.5% compared to the prior year period. This mainly reflects lower air freight volumes resulting from a stronger focus on margin improvements within a weak overall market environment.
The division’s operating profit experienced a sharp decline from EUR 102 million in the prior year period to EUR 40 million in the second quarter of 2015. This reflects a number of factors: the turnaround program, including comprehensive restructuring measures that the division is undertaking and ongoing transformation costs, as well as continued margin pressure in the overall market. A positive one-off effect of EUR 99 million from the partial divestiture of the Group´s stake in the Chinese logistics company Sinotrans was mostly utilized to support these restructuring initiatives.
The management of the division is focusing on improving the operating performance of the business and has already introduced a number of changes to structure and processes within the division to address this goal. This includes, for example, giving the management of individual countries more autonomy and enabling a renewed strong focus on customers. Measures have already been initiated to improve the division’s cost structure and service quality. The future of the transformation program will be defined in the coming months.
Deutsche Post DHL Group operates under two brands: Deutsche Post is Europe’s leading postal service provider. DHL is uniquely positioned in the world’s growth markets, with a comprehensive range of international express, freight transportation, eCommerce, and supply chain management services. Deutsche Post DHL Group employs about 480,000 people in over 220 countries and territories worldwide. The Group generated revenues of more than EUR 56 billion in 2014.
Source: oevz.com