Deutsche Post triples profit as Asia boosts DHL
The Local · 2 Aug 2011, 13:14
Published: 02 Aug 2011 13:14 GMT+02:00
That was just below an average analyst forecast compiled by Dow Jones Newswires of €279 million, however, and came on sales up just 0.3 percent to €12.8 billion, a statement said.
Analysts had expected sales of around €13.3 billion.
The group raised its full-year forecast for core earnings, saying it now expected a result "at the upper end" of a range of €2.2-2.4 billion.
"We are continuing to grow and have kept the positive momentum of the last quarters," chief executive Frank Appel said in the statement.
Investors took heart, and Deutsche Post shares gained 1.08 percent to €12.14 in midday trading on the Frankfurt stock exchange which was 0.67 percent lower overall.
Earnings before interest and tax (EBIT) in the second quarter more than doubled to €562 million, the company said.
Its DHL express delivery division accounted for €471 million of the group's core earnings, a multiple of nearly four from the same period in 2010.
Deutsche Post said DHL had been boosted by "ongoing global economic growth as well as its exceptional market position in the world's fast growing regions-- particularly in Asia."
Deutsche Post also benefitted from a lack of restructuring charges that totalled €250 million last year.
It noted, however, that core earnings in its traditional mail operations fell by about 25 percent to €183 million, largely owing to a value-added-tax imposed in July 2010 and costs stemming from the setup of an Internet-based retailing business.
"This drop could, however, be partially offset by increased earnings in the parcel business and the division's strict, ongoing cost management," it said.