Deutsche Post DHL expects to generate higher revenues and increase its consolidated net profitthis year thanks to international economic recovery and rising global trade volumes, CEO Frank
Appel told shareholders at the company’s Annual General Meeting in Frankfurt today.“We have successfully overcome the crisis and further solidified our position as the world’sleading logistics provider and Europe’s largest postal company under extremely adverse conditions.This unique positioning will enable us to benefit over-proportionally from the acceleratingrecovery of the world economy,” Appel declared.
The perceptible rebound in volume in the first months of the year is a clear indication of astrengthening economic upswing, the chairman of the management board said. This recovery reinforcesthe fundamental optimism about the Group’s future direction this year, he added. Deutsche Post DHLwill release Q1 results on May 11.
For the full 2010 year, the company expects underlying EBIT to rise to between €1.6 billion and€1.9 billion, with a similar profit contribution from the Mail division and the DHL divisions forthe first time. “In the future, we are counting on DHL to be the driving force of growth in theconsolidated net profit,” Appel said.
During the current year, Deutsche Post DHL will make “the lives of our customers easier byoffering innovative products, increased service quality and the continuous development of specificsolutions,” Appel said. By doing so the company would be able to generate growth and sustainablyimprove the Group’s profitability. For 2011, Appel expects to see a continuation of the positiveearnings trend.
The CEO also rejected a call by German institutional shareholder Union Investment to split upthe group into its two core businesses of mail (Deutsche Post) and logistics (DHL) along the linesof TNT’s plans. The two businesses were worth more separately than combined and a separation wouldeliminate the costs of the central holding company, portfolio manager Wolfgang Gierse told theAGM.
In 2009, Deutsche Post DHL successfully managed the repercussions of the economic andfinancial-market crisis and surpassed the company’s earnings targets in a very challenging marketenvironment. Underlying EBIT totalled €1.47 billion and the consolidated net profit reached €644million, compared with the loss of €1.7 billion experienced in 2008.
Based on last year’s positive results and its confidence about the group’s future development,the board of management and the supervisory board proposed an unchanged dividend of €0.60 per sharefor 2009 to the Annual General Meeting to be distributed to shareholders free of tax. In future, DPDHL aims to pay out 40%-60% of consolidated net profit to shareholders.
Other AGM items included the re-approval of authorisation to acquire the company’s own sharesand the endorsement of a modified management board payment system including a furthersustainability element.
