DHL ‘solid’ in 2Q

   In the second quarter, Deutsche Post DHL experienced a 2 percent rise over 2011’s second-quarter adjusted revenues of 13.7 billion euros ($18.2 billion) due to gains in the German parcel market, the company’s supply chain division, and DHL’s express business.
   DHL has also increased its earnings guidance, revising its estimated earnings from between 2.7 billion euros to 2.95 billion euros to the new range of between 2.75 billion euros and 3 billion euros.
   Operating earnings rose by 14 percent to 619 million euros, and consolidated net profit increased from 196 million euros to 422 million euros.
   “Given the economic challenges we continue to face, we can be satisfied with our solid performance in the second quarter,” Frank Appel, DHL’s chief executive officer, said in a statement. “Our strength in the international express business and in Germany’s parcel market has paid off once again in the past few months. Our focus on cash flow generation is also increasingly bearing fruit.”
   In the near term, the company sees earnings continuing to rise anywhere from 13 percent to 15 percent over the next two years. Operating earnings are pegged to increase to somewhere around 3.55 billion euros by 2015.
   Contributing to the health of DHL’s second quarter results, the supply chain division generated adjusted revenues that rose 6 percent, year over year. Increased business in the automotive, consumer and retail sectors, as well as gains in the Asia-Pacific region, helped propel earnings. New contracts set a record at 350 million euros. Earnings dripped from 101 million euros to 79 million euros due to restructuring changes.
   Adjusted express division revenues showed a 4 percent year-over-year increase on the strength of time-definite, international shipments. Earnings fell due to one-time VAT changes. In the mail sector, non-adjusted revenues rose 4.4 percent on the strength of German operations. Parcel revenues were up 9 percent, and officials expect a continued rise as they ride the growing wave of online retail. The parcel business now represents one-quarter of the mail division’s revenue. – Jon Ross