DP-DHL shows solid growth in Mail and Express

In keeping with the recent string of good results by the major diversified LSP’s, DP-DHL has announced a solid set of figures for the third quarter. Revenue was up 2.5% year-on-year at €13,125m whilst EBIT was up 18.5% at €646m.

Of DP-DHL’s divisions, the best performer in terms of revenue was DHL Express with a 7.7% year-on-year increase in revenue. Profit margins also increased, with EBIT up by 10.1% to €219m. This was a surprisingly good performance, with volumes increasing and even demand for premium services such as ‚Time Definite International‘ increasing year on year. Profit margins increased as higher volumes pushed-up asset utilisation. DHL Express claims that this growth is "clearly ahead of the competition".

Global Forwarding Freight was more predictable with a 1.9% growth in revenue, but a 22% increase in EBIT to €122m. Volumes for ocean freight fell by 1.1% year-on-year and air freight fell by 3.6%. What drove profits was, as DHL put it "favourable buying conditions", that is the ability of DHL to drive down freight rates.

The performance at the contract logistics business, Supply Chain Services, was more disappointing with revenue down slightly by 0.1% year to €3.3bn. Profits did rise by 19.3% year-on-year, but this increase must be seen in the context of profitability remaining low at €99m. DHL said that business continued to grow in Asia-Pacific, with this region now accounting for 10% of total revenue.

Perhaps more surprisingly, Deutsche Post Mail did quite well with revenue up 2.6% year-on-year and its EBIT figure jumped 17.5%. DP-DHL attributes this buoyancy to growth in its parcels business in-turn driven by internet retailing. This performance was important for the whole of DP-DHL, not just because it is the largest of all the four divisions in terms of profits, but also because the company has promised to stabilise the division in the face of accelerating long-term decline in the mail market.

Conceivably DP-DHL is benefitting disproportionately from growth in markets such as China, however its results do not appear to describe a world trading system on the edge of recession. Perhaps that is yet to come.

Quelle: eyefortransport
Portal: www.logistik-express.com