DHL reports strong start to 2010

Reported EBIT climbed from €27 million in the first three months of 2009 to €512 million in 2010, on revenues of €1.3 billion (Q1 2009: €618m).  Consolidated net profit after minorities climbed 85.1% to €1.7 billion.

At €195 million, the group’s capital expenditures in Q1 2020 was 19.1% below the previous year’s level. However, the company remains committed to the planned increase in capital expenditure to €1.4 billion for the entire year.

Mail division: Revenues better than expected

First quarter revenue at €3.4 billion was almost at the same level as the prior year period (Q1 2009: €3.5bn).

At €390 million, the division’s underlying EBIT for the first quarter finished 4.2% below the previous year’s level of €407 million.

Express division: Increasing momentum

First quarter revenue at €2.6 billion was 9% higher than the prior year period, with the Americas and Asia-Pacific regions being particularly strong. Adjusted for exchange-rate effects, organic growth in these two regions was 16.1% and 19.3% respectively.

The division’s EBIT also improved strongly, reaching €154 million, compared with the loss of €120 million in Q1 2009. This is attributed to the global economic recovery, as well as the completion of the company’s restructuring program in the US and significant cost reductions worldwide.

Global Forwarding, Freight division: Strong growth

The increase in volumes seen since the second half of 2009 accelerated in the first quarter of 2010, resulting in first quarter revenues of €3.1 billion, up 13.5% from €2.7 billion in the same period last year.

DHL secured additional capacity to cope with increasing demand, but rising transport rates for air and ocean freight capacities could not be completely passed on to customers. However, the division’s successful push to cut operating and indirect costs resulted in an 8% increase in EBIT to €54 million (Q1 2009: €50m).

Supply Chain division: Significantly improved performance

At €3.1 billion, revenue was 0.5% below the level from the same quarter in 2009, largely as a result of the loss of business caused by the bankruptcy of the Arcandor Group in Germany and an under-performing contract in the US that was not renewed in Q2 2009.

In most regions and sectors, revenue trends were positive, with new business wins and trading upturns generating strong growth, particularly in the Asia-Pacific region. Additional contracts with new and existing customers during Q1 2010 totalled about €240 million, and underlying EBIT climbed 52.4% to €64 million (Q1 2009: €42m).

Guidance: Full-year EBIT projection confirmed

For the full year 2010, the group expects the recovery in global transport volumes to continue, and has confirmed its guidance of underlying EBIT between €1.6 billion and €1.9 billion.