DHL: Profits to grow 13-15% through 2015

   Deutsche Post DHL said Tuesday that it had earnings before interest and taxes of 691 million euros ($894 million) in the first quarter ended March 31, 9.9 percent more than the 629-million-euro EBIT recorded in the first quarter of 2011.
   Revenue in the quarter was 13.4 billion euros, 4.3 percent more than the 12.8 billion euros recorded in the first quarter of 2011.
   The company’s postal business uses the Deutsche Post brand, while its other businesses use the DHL brand.
By operating division:

• Mail revenue was up 1.1 percent to 3.6 billion euros, EBIT was up 5.4 percent to 393 million euros.
• Express revenue was up 9.9 percent to 3 billion euros, EBIT was up 7.9 percent to 231 million euros.
• Global forwarding and freight revenue was up 2.4 percent to 3.7 billion euros, EBIT was up 22.5 percent to 87 million euros.
• Supply Chain revenue was up 6 percent to 3.4 billion euros, EBIT was up 16.7 percent to 91 million euros.

   The company said it expects the DHL divisions – express, forwarding and freight, and supply chain – to produce annual earnings growth that will average between 13 percent and 15 percent between 2010 and 2015.
   Against the backdrop of the strong volume increases in the parcel business the Deutsche Post DHL said it will invest about 750 million euros in the modernization of its Germany-wide parcel network. In the DHL divisions, the company is also planning to make additional investments in a new information technology infrastructure for global forwarding as well as in the further expansion of the express network. DHL Express recently began a new round-the-world route that links Hong Kong, Los Angeles and Leipzig. The company also announced a $50 million expansion of its hub in Cincinnati.
   It said in a few weeks, it will open a new hub for North Asia at Shanghai’s international airport, representing an investment of $175 million. It has existing Asian hubs in Hong Kong, Bangkok and Singapore as well as more than 50 additional DHL express gateways.
   In addition, DHL Express announced Wednesday it has partnered with the U.S. Commerce Department’s International Trade Administration to help small and mid-size businesses harness new international sales opportunities in the global marketplace.
   “We continue to see enormous growth opportunities in the emerging markets of Asia, Latin America and the Middle East,” said Frank Appel, chief executive officer of Deutsche Post DHL. “With an unparalleled global infrastructure at our disposal in which we are investing constantly, we have the best possible foundation for generating further profitable growth.” – Chris Dupin