Deutsche Post World Net today announced first-quarter earnings (EBIT) up 8.7% on the same periodlast year to EUR 998 million, on the back of strong growth in its international mail and express
divisions.Consolidated revenue climbed 4.4% to EUR 15.5 billion, with international revenues nowaccounting for around 60% of the total.
Express earnings reached EUR 62 million compared to a loss of EUR 58 million in Q1 2006.Revenue growth in the express division in Q1 was moderate, however, up just 0.9% to EUR 3.33billion compared to Q1 in 2006.
Chief financial officer Edgar Ernst put this down to foreign currency effects of about EUR150 million, with more than half of Express’ revenues generated outside Europe. “But if you look atrevenues in individual local currencies, our organic revenues in the express business areaincreased by 6.5%,” he said.
Europe, Asia Pacific, Eastern Europe, Middle East and Africa all recorded strong growth,while local currencies revenues in the Americas grew 3.2%, with high growth in Latin Americadomestic business.
Mail division revenues rose 2.9% to EUR 3.93 billion compared to the year before, mainly downto the integration of UK mail services firm Williams Lea and international gains. EBIT from mailfell 10.8% to EUR 618 million, however, due to less working days compared to the first quarter of2006 and a steep cut in parcel prices.
Logistics revenue grew 6.1% to EUR 6.22 billion. DHL Exel Supply Chain jumped 12% to EUR 3.19billion, mainly due to a 10-year contract with the UK’s National Health Service, while DHL GlobalForwarding fell 1.5% to EUR 2.19 billion due to currency effects and lower freight rates in someregions.
Revenues from financial services, mainly Postbank, grew 5.2% to EUR 2.48 billion, althoughbusiness services recorded an EBIT loss of EUR 134 million due to arbitration proceedings withDeutsche Telekom and last year’s disposal of McPaper.
For the year as a whole, DPWN expects EBIT to be EUR 3.6 billion, excluding non-recurringeffects, EUR 287 million less than last year. Express division should reach at least EUR 400million, including costs related to the new Leipzig/Halle European air hub, compared to EUR 325million in 2006 and a loss of EUR 23 million in 2005.
