German transport and logistics giant Deutsche Post DHL on Tuesday reported its official third-quarter results, with revenue rising 20% year over year (y/y) to $23.9 billion and earnings before interest and taxes of $2.01 billion.
For 2022, Deutsche Post DHL (OTCUS: DPSGY) raised its EBIT guidance to a record $8.38 billion, up from an initial projection of $7.98 billion made in October. The first three quarters of 2022 were the best in the company’s multi-decade history, CEO Frank Appel said in a statement accompanying the results.
The EBIT margin of 8.5% came in below the prior-year level of 8.8%, Deutsche Post DHL said.
The air and ocean freight forwarding and contract logistics businesses were the key drivers, the company said. The global forwarding business posted a 57% y/y gain in EBIT and a 38.2% revenue increase. At $7.88 billion, the division was the revenue leader among the company’s five business units.
Air volumes in the quarter decreased y/y but were roughly comparable with second-quarter 2022 levels. Ocean freight volumes rose 11.9% due to the integration of J.F. Hillebrand, an ocean forwarding company that Deutsche Post DHL acquired in 2021 and closed on in March. EBIT for the unit rose to 7.4% in the quarter.
Revenue for DHL Supply Chain, the contract logistics unit, rose 14.5% to $4.22 billion. EBIT increased 54.9% y/y. The unit, the largest contract logistics business, reported strength in all regions. However, gains in the Americas were most pronounced as e-fulfillment demand gained traction, the company said.
DHL Express, the company’s international air express unit, reported a 21.8% revenue increase to $7.18 billion. EBIT rose 4.2% to $1 billion. Pricing measures and higher fuel surcharges offset a decline in international time-definite shipments to produce an EBIT margin of 14.1%, the company said. That was below the 16.4% EBIT margin in the year-earlier quarter.