11.05.2016
Deutsche Post AG DE0005552004
Deutsche Post AG: Deutsche Post DHL Group delivers strong earnings performance in Q1 2016
DGAP-Media / 11.05.2016 / 07:00
Deutsche Post DHL Group delivers strong earnings performance in Q1 2016
- Group EBIT increases by 21.3% to EUR 873 million in the first three
months - growth in all four corporate divisions
- Guidance for full-year 2016 confirmed: operating profit forecast to
rise to between EUR 3.4 billion and EUR 3.7 billion
- CEO Frank Appel: "The good start to the year puts us firmly on track to
achieve our targets for 2016."
Bonn, May 11, 2016: Deutsche Post DHL Group increased operating profit
significantly in the first quarter of 2016. Group EBIT rose to EUR 873
million, or 21.3% over the prior-year period (2015: EUR 720 million). The
increase extended further the earnings momentum that had already begun
during the fourth quarter of last year. Group revenue decreased by 6.1% to
EUR 13.9 billion in the first three months of the year (2015: EUR 14.8
billion). In addition to negative currency effects and lower fuel
surcharges, the decline primarily reflects the changed recognition of
revenue generated from a key customer contract in the Supply Chain division
starting in the fourth quarter of 2015. Adjusted for the above effects,
Group revenue rose by 1.4% on the prior year. The main growth drivers -
above all the international express business and the dynamic parcel and
eCommerce business - remained intact in the first months of the new year.
"We've had a good start to the current year. With an EBIT of EUR 873
million we have registered the strongest first quarter in our company
history. The efforts we made in 2015 to position ourselves for profitable
growth in all divisions are paying off. Last year was a year of transition,
and we are now firmly on track to achieve our targets for 2016," stated
Frank Appel, CEO of Deutsche Post DHL Group.
Outlook: Earnings forecast for 2016 and long-term objectives confirmed
For 2016, the Group continues to anticipate moderate growth of the global
economy. The strategic measures implemented in all four divisions in 2015,
however, should lead to a substantial EBIT increase in the current year.
Therefore, Deutsche Post DHL Group re-confirms its 2016 EBIT forecast of
between EUR 3.4 billion and EUR 3.7 billion after a good first quarter.
The Group is also maintaining its targets beyond 2016: Deutsche Post DHL
Group continues to forecast an average increase in operating profit of more
than 8% annually during the period from 2013 to 2020 (CAGR).
Q1 2016: Significant increase in profitability
Group revenue decreased by 6.1% to EUR 13.9 billion in the first three
months of the year (2015: EUR 14.8 billion). The decrease reflects negative
currency effects as well as the effect of lower fuel surcharges due to the
drop in oil prices. Another cause of the decline was the change in revenue
recognition, announced last year, which was due to contractual amendments
involving a key account in the Supply Chain division (NHS in the UK).
Adjusted for those three factors, first-quarter revenue increased by 1.4%
over the prior year.
Group EBIT rose significantly, increasing by 21.3% to EUR 873 million in
the first quarter of 2016 (2015: EUR 720 million). All four divisions
contributed to the upward trend. In the Post - eCommerce - Parcel division,
operating profit climbed by 3.3% to EUR 412 million (2015: EUR 399
million). The DHL divisions reported a combined increase of 32.8% to EUR
534 million (2015: EUR 402 million). Express saw an EBIT increase of 7.5%
to EUR 357 million. Operating earnings for Global Forwarding, Freight rose
from EUR 17 million to EUR 51 million, and Supply Chain EBIT increased from
EUR 53 million to EUR 127 million.
Thanks to the increase in operating profitability and lower tax expenses
consolidated net profit rose by 29,1% to EUR 639 million in the first
quarter of 2016 (2015: EUR 495 million). Basic earnings per share similarly
increased from EUR 0.41 in the previous year to EUR 0.53 in 2016.
Capital expenditure: Group strengthens its foundation for growth with
increased investments
In the first quarter of 2016, Deutsche Post DHL Group made continuing
substantial investments aimed at further strengthening the foundation for
the Group's future success. All in all, capital spending increased by 50%
to EUR 411 million in the first three months (2015: EUR 274 million).
Investments focused on positioning the Group for future profitable growth
in all four divisions. For example, the Group made further advances in
extending its national and international parcel infrastructure in addition
to modernizing the aircraft fleet and expanding global and regional hubs in
the Express division.
Cash flow: Usual seasonal trend
At EUR -700 million (2015: EUR -377 million), free cash flow for the
quarter reflected the usual seasonal trend in which the Group's cash flow
is impacted by the annual advance payment for civil servants' pensions.
This year, the payment amounted to EUR 517 million. Moreover, the decline
in free cash flow also reflects Working Capital phasing in addition to
slightly higher payments for capital expenditures (net cash capex).
Post - eCommerce - Parcel: Continued strong growth in the parcel business
Revenue in the Post - eCommerce - Parcel division increased by 2.4% to EUR
4.2 billion in the first quarter (2015: EUR 4.1 billion). A total of EUR
1.7 billion of that figure was generated by the eCommerce - Parcel business
unit, which continued to see dynamic growth of 8.6% compared with the
prior-year period. The increase was based on revenue gains of 6.9% for
Parcel Germany, 13.9% for Parcel Europe and 11.6% for eCommerce. The upward
trend shows once again how Deutsche Post DHL Group is benefitting from
positioning itself successfully as a market and innovation leader in the
high-growth e-commerce segment.
Revenue in the Post business unit declined slightly by 1.2% to EUR 2.53
billion (2015: EUR 2.56 billion) with the first quarter 2016 having one
working day less than last year's period. The January 1 increase in letter
postage prices almost fully offset the structural decline in volumes within
the Mail Communication and Dialogue Marketing segments as well as the
working day-effect.
Operating profit in the PeP division climbed by 3.3% to EUR 412 million
(2015: EUR 399 million). Continued strong growth in the parcel business as
well as the letter price increase more than offset the volume decline at
Post and the significant investments into the expansion of the eCommerce -
Parcel business.
Express: Positive revenue and earnings trend continues
In the Express division, the first quarter brought a continuation of the
positive revenue and earnings trends that have existed for several years.
Revenue rose by 0.3% to EUR 3.25 billion over the prior-year figure (2015:
EUR 3.24 billion). Adjusted for negative currency effects and lower fuel
surcharges, the increase was 6.1%. The sustained upward trend in the
Express division was primarily driven by continued strong growth in the
time-definite international (TDI) business, where first-quarter shipment
volumes rose by 7.9% year on year and incremental positive yield effects
were achieved.
Divisional EBIT rose by 7.5% to EUR 357 million in the first quarter of
2016 (2015: EUR 332 million), with negative currency effects preventing an
even greater increase. The operating margin improved to 11.0% (2015:
10.2%).
Global Forwarding, Freight: Significant improvement in operating
performance
Revenue in the Global Forwarding, Freight division decreased by 12.2% to
EUR 3.3 billion in the first quarter of 2016 (2015: EUR 3.8 billion).
Adjusted for negative currency effects, revenue declined by 9.3% compared
with the prior-year period. Apart from the weak market environment, the
main reason for the revenue decline was the division's more selective
market strategy.
Operating profit nonetheless increased, from EUR 17 million in the previous
year to EUR 51 million in the first quarter of 2016. The considerable rise
in the division's profitability is a clear indication of the positive
effects of measures introduced in the past year to improve operating
performance at Global Forwarding, Freight.
Supply Chain: Strong EBIT increase
Revenue in the Supply Chain division decreased by 13.9% to EUR 3.4 billion
in the first quarter (2015: EUR 3.9 billion). Adjusted for negative
currency effects, revenue declined by 10.1% compared with the prior-year
period. After additionally adjusting for the negative effect of the change
in revenue recognition due to revised terms in the UK NHS contract,
announced in 2015, revenue increased by 2.4% on the previous year. Supply
Chain continued to generate further new business. In the first quarter, the
division concluded additional contracts worth around EUR 276 million with
both new and existing customers.
Divisional EBIT improved from EUR 53 million in the first quarter of 2015
to EUR 127 million in the first three months of 2016. The 2016 figure
includes income from real estate transactions, which was partially offset
by the restructuring costs incurred.
- End -
Note to editors: An interview with CFO Larry Rosen and a text on the topic
of Streetscooter can be found at www.dpdhl.de. The Group's investor
conference call will be webcast beginning at 2 p.m. (CET).
Media contact
Deutsche Post DHL Group
Media Relations
Dan McGrath/Christina Neuffer
Phone: +49 228 182-9944
E-mail: [email protected]
On the Internet: www.dpdhl.com/press
Follow us: www.twitter.com/DeutschePostDHL
Deutsche Post DHL Group is the world's leading mail and logistics company.
The Group is focused on being the first choice for customers, employees and
investors in its core business activities worldwide. It makes a positive
contribution to the world by connecting people and enabling global trade
while being committed to responsible business practices and corporate
citizenship.
Deutsche Post DHL Group operates under two brands: Deutsche Post is
Europe's leading postal service provider. DHL is uniquely positioned in the
world's growth markets, with a comprehensive range of international
express, freight transportation, e-commerce and supply chain management
services.
Deutsche Post DHL Group employs approximately 500,000 employees in over 220
countries and territories worldwide. The Group generated revenues of more
than 59 billion Euros in 2015.
Die Post für Deutschland. The logistics company for the world
Group financial highlights for the first quarter of 2016
in million euros 1st quarter 1st quarter Change 2015 2016 in % Revenues 14,767 13,872 -6.1 - of which international 10,320 9,392 -9.0 Profit from operating 720 873 21.3 activities (EBIT) Consolidated net profit1) 495 639 29.1 Basic earnings per share 0.41 0.53 29.3 (in euros) Diluted earnings per 0.39 0.51 30.8 share (in euros)Divisional revenues in the first quarter 2016 in million euros 1st Share of 1st Share of Change quarter total quarter total in % 2015 revenue 2016 revenue Post - eCommerce 4,101 27.8% 4,201 30.3% 2.4 - Parcel Express 3,240 21.9% 3,251 23.4% 0.3 Global 3,789 25.7% 3,327 24.0% -12.2 Forwarding, Freight Supply Chain 3,942 26.7% 3,393 24.5% -13.9 Corporate -305 n.a.. -300 n.a. 1.6 Center/Other and Consolidation Group 14,767 100% 13,872 100% -6.1Divisional EBIT in the first quarter 2016 in million euros 1st quarter 1st quarter Change 2015 2016 in % Post - eCommerce - Parcel 399 412 3.3 DHL 402 534 32.8 - Express 332 357 7.5 - Global Forwarding, 17 51 >100 Freight - Supply Chain 53 127 >100 Corporate Center/Other -81 -74 8.6 and Consolidation Group 720 873 21.31) After non-controlling interests End of Media Release --------------------------------------------------------------------------- Issuer: Deutsche Post AG Key word(s): Enterprise 11.05.2016 Dissemination of a Press Release, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Deutsche Post AG Charles-de-Gaulle-Straße 20 53113 Bonn Germany Phone: +49 (0)228 182 - 63 100 Fax: +49 (0)228 182 - 63 199 E-mail: [email protected] Internet: www.dpdhl.com ISIN: DE0005552004 WKN: 555200 Indices: DAX Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX End of News DGAP Media --------------------------------------------------------------------------- 462177 11.05.2016
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